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
    stress management for healthcare workers
    3 Tips For Healthcare Professionals: How To Stay Beautiful, Healthy, and Happy
    November 2, 2021
    importance of relaxing on the weekend for your health
    Importance of Relaxing During the Weekend for Optimal Health
    March 25, 2022
    LASIK Eye Surgery
    What Is LASIK Eye Surgery?
    May 16, 2022
    Latest News
    7 Most Common Healthcare Accreditation Programs: Which Should You Use?
    August 20, 2025
    Hospital Pest Control and the Fight Against Superbugs
    August 20, 2025
    Hygiene Beyond The Clinic: Attention To Overlooked Non-Clinical Spaces
    August 13, 2025
    5 Steps to a Promising Career as a Healthcare Administrator
    August 3, 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
    All That You Need to Know About Clenbuterol
    November 22, 2019
    Top 5 Facts About CPPA Accreditation
    April 9, 2015
    mental health benefits school
    Mental Health & Practical Benefits of Continuing Education After 30
    June 30, 2024
    Latest News
    How Social Security Disability Shapes Access to Care and Everyday Health
    August 22, 2025
    How a DUI Lawyer Can Help When Your Future Health Feels Uncertain
    August 22, 2025
    How One Fall Can Lead to a Long Road of Medical Complications
    August 22, 2025
    How IT and Marketing Teams Can Collaborate to Protect Patient Trust
    July 17, 2025
  • Medical Innovations
  • News
  • Wellness
  • Tech
Search
© 2023 HealthWorks Collective. All Rights Reserved.
Reading: Subsidies Will Temper Health Insurance “Rate Shock” for the Young
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 > Policy & Law > Health Reform > Subsidies Will Temper Health Insurance “Rate Shock” for the Young
Health ReformPolicy & Law

Subsidies Will Temper Health Insurance “Rate Shock” for the Young

DavidEWilliams
DavidEWilliams
Share
3 Min Read
health insurance rate shock
SHARE

health insurance rate shockThe Affordable Care Act (aka Obamacare) is a complex, multi-faceted law but critiques of it are often simplistic and opponents find themselves getting twisted up in contradictions trying to resist implementation.

health insurance rate shockThe Affordable Care Act (aka Obamacare) is a complex, multi-faceted law but critiques of it are often simplistic and opponents find themselves getting twisted up in contradictions trying to resist implementation. For example, states that reject the Medicaid expansion on grounds of it being too costly for them will actually find themselves much deeper in the hole when all factors are taken into account, and critics of state based health insurance exchanges will find themselves saddled with a one-size-fits-all federal solution rather than one where the state can exercise autonomy.

A newish area for lament and critique is the “rate shock” that some say will hit young people especially hard in 2014. There are reasons that rates will rise. For example, by letting people with pre-existing conditions buy health insurance and for the same rates paid by healthy people, overall rates will rise. But according to a new issue brief from Avalere Health, many of the people who are predicted to experience “rate shock” will have their pain cushioned because they are in the income band that makes them eligible for premium subsidies.

If health plans, exchanges and others market the premium subsidy opportunity effectively they may find plenty of willing customers and “rate shock” won’t be such a big deal after all.

More Read

5 Elements of an Effective HIPAA Audit Program
Preparing for a HIPAA Audit and Avoiding Disaster [INFOGRAPHIC]
The Intersection of Speed and Safety: Understanding the Health Implications of Deportive Car Accidents
Why Can’t The Market for Medical Care Work Like Cosmetic Surgery?
Here’s What To Know And Expect About The Future Of Healthcare
Do Health Plans Have a Future?

I asked Avalere’s CEO Dan Mendelson to comment on the findings. Here’s what he said:

“There has been a lot of rhetoric on the issue of “rate shock” – with Republicans playing it up and Democrats playing it down.  But the issue is real and needs to be anticipated and mitigated by policy makers.  And consumers have to prepare.

Our study shows that 2/3 of young eligibles are going to be subsidized by the government if they enroll.  This will mitigate the effects of any “rate shock” for the majority of younger enrollees.

Of course many older people, as well as young people with chronic health conditions who were underwritten on the basis of experience will see their premiums go down on enrollment in the exchanges.”

(Health insurance rate shock / shutterstock)

Share

TAGGED:health insurance rate shock
Share This Article
Facebook Copy Link Print
Share

Stay Connected

1.5kFollowersLike
4.5kFollowersFollow
2.8kFollowersPin
136kSubscribersSubscribe

Latest News

engineer fitting prosthetic arm
How Social Security Disability Shapes Access to Care and Everyday Health
Health care
August 20, 2025
a woman explaining the document
How a DUI Lawyer Can Help When Your Future Health Feels Uncertain
Public Health
August 20, 2025
physiotherapist at work
How One Fall Can Lead to a Long Road of Medical Complications
Health care
August 20, 2025
Common Healthcare Accreditation Programs
7 Most Common Healthcare Accreditation Programs: Which Should You Use?
Health News
August 20, 2025

You Might also Like

Health careMarketingWellness

Leading People to Healthy Living through Blogging

September 10, 2018
Health Ailments
Health careWellness

Staying Healthy Despite Digital-Age Health Ailments

May 17, 2018
eHealthPublic Health

How Much Does It Cost To Be Gluten Free? Here’s What To Know

June 5, 2019

CMS Depression Screening

August 31, 2011
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?