The High Cost of Charging Older People Much Higher Premiums
<p>Health insurers covet young adults as enrollees because they tend to be healthier, and incur lower costs. Bringing more young people into the Affordable Care Act marketplaces could balance their risk pools, which some insurers complain are dominated by less healthy people. To attract more young enrollees, some policy analysts are suggesting lowering their premiums by allowing insurers to charge older people much more relative to young people. Currently, insurers can charge older adults up to three times what they charge young adults.</p><p>In a new <em>To the Point</em>, Commonwealth Fund Vice President Sara R. Collins explains that allowing insurers to charge older adults up to five times what they charge young adults, as has been proposed, might lead to only small coverage gains for young adults, but cause significantly higher premiums and a loss of insurance for older adults, at substantial federal cost.</p>
http://www.commonwealthfund.org/publications/newsletters/ealerts/2016/aug/the-high-cost-of-charging-older-people-much-higher-premiums Read the post