In a reveling article in the St. Paul Business Journal Kent Hoover spells out the practical side of the Affordable Care Act. In a nut shell he explains why young adults between 21 and 29 years of age will be paying up to 42% more for their health benefits starting in 2014. Currently most states mandate that there are 5 age bracket from 21 to 64, thus keeping premium costs low for the young and quite expensive for the 60+ age group. Starting in 2014 there will be a 3 age band imposed on plans. Meaning the young will pay much more in premiums and the older will pay much less for their health care premiums. To read the full article click on the link http://www.bizjournals.com/bizjournals/washingtonbureau/2013/01/07/young-adults-to-pay-more-for-health.html .
It may be necessary to band the ages this way, but with young people already taking the brunt of the bad economy, does this make sense? I can tell you from personal experience, that we write young people up on individual policies that at are paid for by their parents every month. These parents are not in the 60's yet so they are not receiving the benefit of lower premium rates for themselves and yet they are now footing the bill for their adult children that simply can not afford their health insurance. How will they afford a 42% rate increase next year? We will see what happens.
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