01

Young Healthy Adults Facing Decisions For Health Insurance

posted on

Based on the changes to the insurance industry, the insurance companies need to have young healthy adults willing to buy insurance from them if they want to make more profits. They are no longer able to turn away people with pre-existing conditions or charge higher prices for those who are older or have those pre-existing conditions. They have to offer their policies to everyone, regardless of their health condition. However, those who are in their 20s and 30s remain to be some of the most coveted individuals by the industry.

This same demographic has to face an unexpected array of decisions based on the healthcare reform that has been provided by ObamaCare. They have to decide if they would rather pay $95 to remain uninsured everywhere or pay monthly premiums for coverage that might eventually have high deductibles and out of pocket expenses. They have to determine which option will provide them with the most benefit, which can sometimes be a gamble depending on their circumstances. Which option will be the most affordable and reasonable for them?

It has been said that around 6 million people of various ages will be paying the penalty for not having insurance next year during the first full year of ObamaCare’s implementation. Some of the younger people say that they don’t need insurance and that they would rather pay the penalty. However, by 2016, the fine jumps to around $695 a year or 2.5 percent of taxable income. This can make the decision to stay uninsured a little more difficult because then they have to decide which one will be more affordable.

For youth who are not worried about handling the price, it’s not so much of a matter of the cost, but rather whether or not they think they need insurance. Some people are able to get some help from government subsidies for the insurance, which means that their premiums may be lower. However, even with the use of the subsidies and the tax credit, it can still result in expensive premiums for those in the younger generation. Many of these people have had to deal with the unsteadiness of the economy for the past few years, so they don’t want to risk paying hundreds of dollars every month for something they may not use on a regular basis.

Ultimately, it remains to be seen whether or not ObamaCare is going to be a success with the youth. There are some who feel that it will for those who truly need medical care and have not been able to afford it on their own at all. However, there are those who feel that it may be a balancing act of determining which option will fit the best into the budget of the young demographic, which up until this point, has been fairly picky. The upcoming months should reveal whether or not the plan will gain success with the youth demographic.