Study: Health Insurance Rates Will Go Up for Young Adults Under Obamacare

Monday, 07 Jan 2013 02:59 PM

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A new study predicts that health premiums could increase as much as 40 percent for young adults once Obamacare goes into effect in 2014.

The concern, according to a study published in “Contingencies” magazine, is that an influx of relatively healthy people will tip the balance away from those with immediate health needs, which will drive up the cost for individuals between the ages of 21 and 29, The Hill reports.

"This means that close to 4 million uninsured individuals . . . can expect to pay more out of pocket for single coverage than they otherwise would, even given the availability of premium assistance," the study’s authors wrote.

According to the study, the 21- to 29-year-old age group has roughly twice the number of uninsured members. This, combined with variables like qualification for vouchers, makes rates somewhat unpredictable.

"Higher rates for the younger population combined with low mandate penalties during the first years of the ACA implementation will result in adverse selection because younger individuals are likely to choose not to purchase coverage," America's Health Insurance Plans (AHIP) wrote in comments to HHS.

“When these younger individuals do not enroll, destabilization of the individual market will occur, premiums will increase in the individual market for enrollees of all ages, and enrollment will decline."

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