There has been much debate in the news recently about how young adults will fare under the new healthcare law in terms of the cost of health insurance. Under the Affordable Care Act (ACA) insurers will not be allowed to sell individual coverage to adults 64 or older with a premium that is more than three times the premium the insurer would charge a 21-year-old for the same coverage. This 3-to-1 ratio is in contrast to the existing 5-to-1 ratio that has historically made it difficult for many older individuals to obtain individual health insurance.
The question on the minds of many has been how young people will be affected when the new age rating policy goes into effect in 2014. Insurance industry representatives and GOP lawmakers have warned that the new system will make insurance unaffordable for young people, essentially forcing them to forego insurance altogether. This, they say, will increase the costs of healthcare overall, since when uninsured young people become sick or injured and seek care they will not be able to pay for it, placing the burden back on taxpayers.
Other sources, including the Robert Wood Johnson Foundation, argue that although premiums may increase for younger adults, other provisions of the ACA including subsidies to offset premium increases and Medicaid will help level the playing field for those who qualify. Additionally, individuals younger than age 26 will be able to stay on their parents’ health insurance policies under the ACA.
While premiums for young people are expected to increase under the new healthcare law, the aim of the ACA is to reduce overall health insurance costs for Americans collectively. It remains to be seen how the new law will affect the ability of young people to afford health insurance.
Consult an Insurance Professional to Explore Your Options
To better understand how the new health care law will affect you it is important to consult an insurance professional. Benefit Packages has decades of experience helping individuals, seniors and businesses obtain insurance with reputable carriers like Anthem Blue Cross and Blue Shield of California. We will be an Exchange Certified Agent when the California’s health insurance exchange, Covered California, begins enrolling later this year. We can help you understand your options when the time comes. Visit our website or call us toll free at 1-800-356-3615.