(NAPSI)-The health insurance coverage issue may uncover some surprises for certain Americans.
One segment of the population that's particularly affected by the uninsured problem is young adults between the ages of 19 and 29. They represent 31 percent of the nation's uninsured.
What a Difference a Year Makes
Young adults usually begin with health insurance coverage under their parents' plan or a public insurance program. But the 19th birthday is a crucial milestone for the health coverage of many young adults in the U.S.
Public programs such as Medicaid usually end eligibility at the 19th birthday. Employer-sponsored health insurance plans often won't cover young adults as dependents under their parents' policy after 19 years of age unless they are enrolled in college.
Young people, even working full-time, may not be offered or able to afford health insurance. Others believe in their own "invincibility" when it comes to future health concerns.
The Myth of the Not-So "Invincibles"
Actually, young adults are more susceptible to some illnesses than any other population. Over 40 percent of uninsured young adults have characterized their health as only fair or poor.
To address the problem, health care reform legislation includes a variety of provisions to help young Americans gain quality, affordable coverage, including proposals to allow young adults to remain on their parents' insurance through the age of 27. Young adults could also benefit from proposed sizable tax credits. According to a report by Jonathan Gruber of MIT, the tax credits could save young adults as much as $685 off their health insurance premiums.
It is time that all Americans, regardless of age, receive timely, affordable, quality health care. It is time for the enactment of systemwide health care reform that provides coverage to all citizens, slows down health care costs and improves the quality of medical care.
To learn more, go to www.nchc.org or call (202) 638-7151.
By Ralph G Neas and Henry E Simmons, MD
• Mr. Neas is chief executive officer of the National Coalition on Health Care; Dr. Simmons is its president. The Coalition is the Nation's oldest and most diverse alliance working for the achievement of comprehensive health care reform.
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Showing posts with label young. Show all posts
Showing posts with label young. Show all posts
Friday, November 13, 2009
Wednesday, September 23, 2009
Analysis Shows Narrow Age Rating Would Raise Premiums by Nearly 50 Percent, Causing Many Young and Healthy to Forgo Coverage
/PRNewswire/ -- Allowing age adjustments more restrictive than 5 to 1 would cause dramatic premium spikes for the young and healthy in the individual insurance market, making coverage unaffordable for many according to a new analysis.
The Blue Cross and Blue Shield Association (BCBSA) released today new data, prepared by Oliver Wyman's Actuarial and Health and Life Sciences practice, showing that a 2 to 1 age rating ratio would increase premiums for the youngest and healthiest Americans in the individual market in many states by nearly 50 percent in the first year, relative to a 5 to 1 age rating ratio.
Currently 42 states permit health plans to vary premiums based on age by 5 to 1 or more -- the primary benefit being that premiums are kept affordable for younger individuals to encourage broad participation. If more restrictive age ratings are implemented, younger people would opt out of purchasing coverage. Oliver Wyman estimates that, over a five year period, more than 1 million younger members would leave the market, resulting in a 10 percent premium increase overall for individuals in some parts of the country.
"An affordable, sustainable insurance market requires broad participation across all age groups to maintain more affordable premiums. As this analysis shows, overly restrictive age rating regulations would hurt a large portion of those with individual coverage -- making coverage less affordable and undermining the key goals of healthcare reform," said Scott P. Serota, president and CEO of BCBSA. "To ensure the long-term sustainability of healthcare reform, we must strike the right balance on age rating to avoid disproportionately burdening one segment of the population over another. For this reason, we support a 5 to 1 age rating similar to what the vast majority of states permit today."
The Oliver Wyman analysis also finds that restricting age rating ratios to 3 to 1 would increase premiums in many states by as much as 30 percent for younger people, relative to a 5 to 1 ratio.
"Younger individuals are much more sensitive to the costs of health insurance compared to older individuals. The bottom line is that if premiums are too high, young and healthy individuals simply will not purchase insurance and their needed cross-subsidies for older, sicker people will be lost, increasing the cost of healthcare for everyone," Serota said.
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The Blue Cross and Blue Shield Association (BCBSA) released today new data, prepared by Oliver Wyman's Actuarial and Health and Life Sciences practice, showing that a 2 to 1 age rating ratio would increase premiums for the youngest and healthiest Americans in the individual market in many states by nearly 50 percent in the first year, relative to a 5 to 1 age rating ratio.
Currently 42 states permit health plans to vary premiums based on age by 5 to 1 or more -- the primary benefit being that premiums are kept affordable for younger individuals to encourage broad participation. If more restrictive age ratings are implemented, younger people would opt out of purchasing coverage. Oliver Wyman estimates that, over a five year period, more than 1 million younger members would leave the market, resulting in a 10 percent premium increase overall for individuals in some parts of the country.
"An affordable, sustainable insurance market requires broad participation across all age groups to maintain more affordable premiums. As this analysis shows, overly restrictive age rating regulations would hurt a large portion of those with individual coverage -- making coverage less affordable and undermining the key goals of healthcare reform," said Scott P. Serota, president and CEO of BCBSA. "To ensure the long-term sustainability of healthcare reform, we must strike the right balance on age rating to avoid disproportionately burdening one segment of the population over another. For this reason, we support a 5 to 1 age rating similar to what the vast majority of states permit today."
The Oliver Wyman analysis also finds that restricting age rating ratios to 3 to 1 would increase premiums in many states by as much as 30 percent for younger people, relative to a 5 to 1 ratio.
"Younger individuals are much more sensitive to the costs of health insurance compared to older individuals. The bottom line is that if premiums are too high, young and healthy individuals simply will not purchase insurance and their needed cross-subsidies for older, sicker people will be lost, increasing the cost of healthcare for everyone," Serota said.
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Thursday, September 17, 2009
New Report Outlines Importance of Health Insurance Reform for Young Americans
HHS Secretary Kathleen Sebelius today released a new report, Young Americans and Health Insurance Reform: Giving Young Americans the Security and Stability They Need. The report highlights the vulnerability young adults face in the current health care system and the urgent need for health insurance reform. The complete report is available at www.healthreform.gov.
"More and more young adults wake up the day after their nineteenth birthday or on graduation day and find themselves uninsured," said Secretary Sebelius. "I've seen this problem first-hand. When my son graduated, he faced the challenge of finding health insurance. Unfortunately, too many of his peers are forced to go without the care they need. Health insurance reform will help insure young Americans have access to the affordable health care they need and deserve."
While seventeen percent of adults (those aged 30-64) are uninsured, thirty percent of young adults do not have health insurance. When young adults lose access to their parents' health insurance, they find it increasingly difficult to afford the high cost of health insurance.
Young adults are often less likely to work for employers who offer health insurance benefits. Nearly half of young people work part-time, and part-time workers are less likely to be offered coverage. Young people are also more likely to work for smaller firms, which tend to offer less coverage. Among young adults working in firms of fewer than 50 employees and who had coverage in 2006, one in four lost that insurance in the following two years - more than twice the rate of older adults.
The report also shows that 33 states allowed insurance companies to charge unrestricted premiums based on age, health status and even gender. In some states, a 22-year-old woman can be charged twice as much for her premium than a 22-year-old man.
The health care status quo is significantly impacting young Americans. In a recent survey, two-thirds who had gaps in healthcare admitted to forsaking health care because of costs including skipping recommended tests and treatment and neglecting to fill a prescription. Even with cost-saving measures, more than one-third of all young adults with coverage report having problems paying medical bills.
Health insurance reform would ensure young adults have access to quality, affordable health coverage, deter mounting health problems and ensure young people are not left with crushing medical debt after an accident or illness. Capping out-of-pocket expenses, co-pays and
deductibles while limiting arbitrary premium increases would provide affordable health care options for young adults as well.
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"More and more young adults wake up the day after their nineteenth birthday or on graduation day and find themselves uninsured," said Secretary Sebelius. "I've seen this problem first-hand. When my son graduated, he faced the challenge of finding health insurance. Unfortunately, too many of his peers are forced to go without the care they need. Health insurance reform will help insure young Americans have access to the affordable health care they need and deserve."
While seventeen percent of adults (those aged 30-64) are uninsured, thirty percent of young adults do not have health insurance. When young adults lose access to their parents' health insurance, they find it increasingly difficult to afford the high cost of health insurance.
Young adults are often less likely to work for employers who offer health insurance benefits. Nearly half of young people work part-time, and part-time workers are less likely to be offered coverage. Young people are also more likely to work for smaller firms, which tend to offer less coverage. Among young adults working in firms of fewer than 50 employees and who had coverage in 2006, one in four lost that insurance in the following two years - more than twice the rate of older adults.
The report also shows that 33 states allowed insurance companies to charge unrestricted premiums based on age, health status and even gender. In some states, a 22-year-old woman can be charged twice as much for her premium than a 22-year-old man.
The health care status quo is significantly impacting young Americans. In a recent survey, two-thirds who had gaps in healthcare admitted to forsaking health care because of costs including skipping recommended tests and treatment and neglecting to fill a prescription. Even with cost-saving measures, more than one-third of all young adults with coverage report having problems paying medical bills.
Health insurance reform would ensure young adults have access to quality, affordable health coverage, deter mounting health problems and ensure young people are not left with crushing medical debt after an accident or illness. Capping out-of-pocket expenses, co-pays and
deductibles while limiting arbitrary premium increases would provide affordable health care options for young adults as well.
-----
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