ACA’s Impact on Insurance Costs for Young People

The Affordable Care Act (ACA), also known as Obamacare, brought significant changes to the health insurance landscape in the United States. One area of particular concern for young people is how the ACA has affected their insurance premiums.

What the ACA Changed

Prior to the ACA, insurance companies were free to charge older and sicker individuals higher premiums than younger and healthier individuals. This practice was known as “age rating” and “medical underwriting,” and it often resulted in young people paying much lower premiums than older adults.

However, the ACA prohibited insurance companies from using age and health status to determine premiums. Instead, premiums must now be based on a set of factors that are the same for everyone, such as the state in which you live and the plan you choose.

How the ACA Has Impacted Young People

The elimination of age rating and medical underwriting has had a mixed impact on insurance costs for young people.

For some young people, premiums have increased. This is because insurance companies can no longer charge older adults more, so they have had to spread the risk pool more evenly across all age groups. As a result, premiums for young people have gone up in many cases.

For other young people, premiums have decreased. This is because the ACA provides subsidies to help low- and moderate-income individuals afford health insurance. These subsidies are available to young people as well as older adults, and they can significantly reduce the cost of premiums.

Overall, the impact of the ACA on insurance costs for young people has been both positive and negative. Some young people have seen their premiums increase, while others have seen their premiums decrease. The specific impact of the ACA will vary depending on a number of factors, such as the young person’s age, health status, and income.

What Young People Can Do to Get Affordable Insurance

If you are a young person looking for affordable health insurance, there are a few things you can do:

Shop around. Compare plans from different insurance companies to find the one that best fits your needs and budget.
Consider a high-deductible plan. High-deductible plans have lower premiums than low-deductible plans, but they also have higher out-of-pocket costs. If you are healthy and don’t expect to need much medical care, a high-deductible plan may be a good option for you.
Look for subsidies. The ACA provides subsidies to help low- and moderate-income individuals afford health insurance. If you qualify for a subsidy, it can significantly reduce the cost of your premiums.
Get help from a licensed agent. A licensed agent can help you understand your options and find the right plan for your needs.

Don’t Wait to Get Covered

If you are a young person who is not currently insured, don’t wait to get covered. The ACA requires everyone to have health insurance, and there are penalties for not having coverage. Getting covered now will protect you from unexpected medical expenses and give you peace of mind.