Posts Tagged - ‘age-rating’

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Individual Health Insurance Rates To Increase For Young Adults?

Tuesday, March 30th, 2010

(Image: r.f.m. II under CC 3.0)

An Associated Press analysis has found that healthcare reform may result in young adults in their 20s and early 30s paying more for their health insurance plans. Starting in 2014, health insurers will no longer be allowed to deny coverage to people with pre-existing conditions, or use age rating practices to charge older consumers rates more than three times higher than those for younger ones. That cost will inadvertently end up passed onto younger policyholders, who use fewer healthcare services and are therefore more profitable.

How much will it cost them? The average individual health insurance premium for this demographic will rise by about $42; a 17% increase. Young men will be harder hit, since their rates tend to be less expensive than women of the same age.

Granted, this estimate does not take into account tax credits and subsidies to pay for insurance, which many people under 35 may be eligible for.

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