By using this site, you agree to the Privacy Policy and Terms of Use.
Accept
Health Works CollectiveHealth Works CollectiveHealth Works Collective
  • Health
    • Mental Health
    Health
    Healthcare organizations are operating on slimmer profit margins than ever. One report in August showed that they are even lower than the beginning of the…
    Show More
    Top News
    medicare part d benefits
    Everything that You Need to Know About Medicare Part D
    August 15, 2022
    Best Ways to Boost Your Immune System this Winter
    Best Ways to Boost Your Immune System this Winter
    November 15, 2022
    back pain issues
    Ways to Treat Constant Back Pain
    August 21, 2023
    Latest News
    How Probate Planning Shapes the Future of Your Estate and Family Care
    July 17, 2025
    Beyond Nutrition: Everyday Foods That Support Whole-Body Health
    June 15, 2025
    The Wide-Ranging Benefits of Magnesium Supplements
    June 11, 2025
    The Best Home Remedies for Migraines
    June 5, 2025
  • Policy and Law
    • Global Healthcare
    • Medical Ethics
    Policy and Law
    Get the latest updates about Insurance policies and Laws in the Healthcare industry for different geographical locations.
    Show More
    Top News
    More On Wellness Programs To Improve Health and Reduce Costs
    January 25, 2012
    Privatizing Social Security and Medicare: Who Can Defuse Political Dynamite?
    June 12, 2011
    Study: Risk of Death in Elderly Patients with Dementia Doubled with Some Antipsychotic Medications
    February 26, 2012
    Latest News
    How IT and Marketing Teams Can Collaborate to Protect Patient Trust
    July 17, 2025
    How Health Choices and Legal Actions Intersect After an Injury
    July 17, 2025
    How communities and healthcare providers can address slip and fall injuries with legal awareness
    July 17, 2025
    Let Your Lawyer Handle the Work Before You Pay Medical Costs
    July 6, 2025
  • Medical Innovations
  • News
  • Wellness
  • Tech
Search
© 2023 HealthWorks Collective. All Rights Reserved.
Reading: GAO Confirms Health Insurance Rating Rules Hike Premiums for Young People
Share
Notification Show More
Font ResizerAa
Health Works CollectiveHealth Works Collective
Font ResizerAa
Search
Follow US
  • About
  • Contact
  • Privacy
© 2023 HealthWorks Collective. All Rights Reserved.
Health Works Collective > Business > Finance > GAO Confirms Health Insurance Rating Rules Hike Premiums for Young People
FinanceHealth ReformPolicy & LawPublic Health

GAO Confirms Health Insurance Rating Rules Hike Premiums for Young People

John Graham
John Graham
Share
0 Min Read
keep-your-politics-out-of-my-healthcare-RALLY
SHARE

In an under-reported brief published last week, the Government Accountability Office confirmed that states which prevent accurate underwriting ofkeep-your-politics-out-of-my-healthcare-RAL<p style=In an under-reported brief published last week, the Government Accountability Office confirmed that states which prevent accurate underwriting ofkeep-your-politics-out-of-my-healthcare-RALLY health-insurance premiums by age impose higher premiums on young people. There has been no shortage of actuarial analysis of ObamaCare’s coming “rate shock” for young adults, but the GAO has used data from the U.S. Department of Health & Human Services’ own website. This is the department which tells us ceaselessly how beneficial ObamaCare is for young people.

For a thirty-year old, non-smoking male, monthly premiums in the three most expensive states are: $2,564 (Massachusetts), $2,232 (New Jersey), and $1,986 (New York). For the same man, premiums in the three least expensive states are: $349 (Nebraska) and $363 (Georgia and Texas).

The difference is not driven solely by forbidding insurers from charging actuarially accurate premiums to young people. The $349 policy in Nebraska has a deductible of $5,000 and that plan’s maximum out-of-pocket cap is $10,000. So while a policy-holder might have an unlucky accident that puts a serious dent in his bank account, he’s not going to go bankrupt with no hope of recovery.

An average 30-year old is unlikely to pay the extra $2,215 monthly ($26,580 per year) to get the extra “protection” of the Massachusetts policy, given the choice. And yet this is the direction in which ObamaCare drives us. New York forces insurers to charge the same premium to all adults. Slightly more “liberal,” Massachusetts and New Jersey allow insurers to blend age with other factors such that the most expensive premiums can be double the lowest (2:1 rating).

More Read

World Medical Device Organization Launches It’s 100th Online Course
Are Your Vendors Ready for ICD-10?
Employers Get Tough
24 Hour Flu Does Not Exist: It’s Food Poisoning
The Technology Corner: 3 Companies That Could Eradicate Ebola Virus

ObamaCare imposes 3:1 age rating rules nationwide. But actuarial consensus is that the average 62-year old incurs five times the medical costs of the average 22-year old. It is not possible to insure against aging. If we live forty years past our 22nd birthday, the likelihood of our turning 62 is one hundred percent. So, forcing insurers to charge the same premium to people of different ages does not reduce any individual policyholder’s risk ― which is the purpose of insurance.

In no way is this “just” or “fair.” It artificially makes health insurance too expensive for young people to afford without subsidy. When coupled with an individual mandate to purchase insurance, this necessarily imposes a burden of excess taxation on society, because high taxes are necessary to fund the subsidies.

This might explain why politicians impose it upon society: It increases their power to tax and transfer income.

TAGGED:ACAhealth insuranceobamacare
Share This Article
Facebook Copy Link Print
Share

Stay Connected

1.5kFollowersLike
4.5kFollowersFollow
2.8kFollowersPin
136kSubscribersSubscribe

Latest News

Grounded Healing: A Natural Ally for Sustainable Healthcare Systems
How IT and Marketing Teams Can Collaborate to Protect Patient Trust
Global Healthcare Policy & Law
July 17, 2025
paramedics in surgical gloves and masks
How Health Choices and Legal Actions Intersect After an Injury
Health care
July 16, 2025
a woman giving a key
How Probate Planning Shapes the Future of Your Estate and Family Care
Health
July 16, 2025
a woman with kinesio tapes on her back arm
How communities and healthcare providers can address slip and fall injuries with legal awareness
Health care
July 16, 2025

You Might also Like

BusinessNewsPolicy & LawPublic Health

Physicians Surveyed Gloomy About Healthcare Reform

March 13, 2012

Nursing Experts Release Guiding Principles for Patient Engagement

July 20, 2012

State Dental Commissions Protect Not Just Your Teeth; They Also Protect…Dentists

December 9, 2011

How Technology Can Help Transition Patients From Hospital to Home

March 15, 2012
Subscribe
Subscribe to our newsletter to get our newest articles instantly!
Follow US
© 2008-2025 HealthWorks Collective. All Rights Reserved.
  • About
  • Contact
  • Privacy
Welcome Back!

Sign in to your account

Username or Email Address
Password

Lost your password?