Skip to comments.Young Avoid New Health Plans: Early Buyers of Coverage Are Older Than Expected
Posted on 11/05/2013 10:20:47 AM PST by reaganaut1
Insurers say the early buyers of health coverage on the nation's troubled new websites are older than expected so far, raising early concerns about the economics of the insurance marketplaces.
If the trend continues, an older, more expensive set of customers could drive up prices for everyone, the insurers say, by forcing them to spread their costs around. "We need a broad range of people to make this work, and we're not seeing that right now," said Heather Thiltgen of Medical Mutual of Ohio, the state's largest insurer by individual customers. "We're seeing the population skewing older."
The early numbers, described to The Wall Street Journal by insurance executives, agents, state officials and actuaries, are still smallpartly a consequence of the continuing technical problems plaguing the federally run exchanges, experts say. HealthCare.gov, the federally run marketplace serving 36 states, is suffering serious technical problems that have prevented many people from signing up.
But the numbers demonstrate a real-world fallout from the digital snafus: Less-healthy customers are more likely to persevere through technical obstacles to gain coverage, insurers say. Younger, healthier customers who feel less need for insurancebut whose widespread participation is important to the financial success of the systemcould be quicker to give up.
The average enrollee age at Priority Health, a Michigan insurer, has ticked up to age 51 for newcomers, from about 41 years old for plans offered for the current year, said Joan Budden, chief marketing officer. Arise Health Plan, Wisconsin's largest nonprofit insurer, said more than half its 150 signees are over 50, a higher proportion than expected, while declining to be specific on its target age.
Industry experts cautioned that, a month into the health law's enrollment period, it is too soon to say what insurers' final pool of members will look like.
(Excerpt) Read more at online.wsj.com ...
Death spiral as young buyers avoid high cost plans leading to higher costs.
Obamacare abolished the State Programs. The Federal Government, unfortunately, must now “fix” that problem.
Having said that, many of the people that I assistd with the State “HIgh Risk Pool” needed that service due to no fault of their own, the COBRA ran out, etc. However, MANY were alos irresponsible people who thought they were “bulletproof” and then demanded coverage AFTER they got sick.
No plan can change human nature. That is the biggest problem with Obamacare, as it attempts to change human behavior.
However, let us be realistic about our “end game” here. Allow Obamacare to “survive” as a National High Risk Pool. Eliminate the mandates and penalties for the rest of us who are healthy.
And by the way: The Courts might well be on the way to doing this at the Federal Exchange level.
All of those SICK people are going to Obamcare! I am positive that the majority of the applicants, so far, are unhealthy people.
So policies under Obamacare will end up being in a defacto high risk pool with everybody else subsidizing it.
“Buyers”. Sure. More like freeloaders I would bet.
When I transitioned off COBRA to private insurance I didn't have to worry about my pre-existing condition, since the law mandated that private insurers take people from COBRA without regard to pre-existing conditions.
It's amazing how many people (politicians) pretend that this law hasn't existed for the past 20 years or so.
Free stuff sells! Who knew?
As Jim Kuntlser noted yesterday in his weekly blog entry, O’care is merely the libtards last gasp at grift.
Yes I agree, but the laws were not the same in every State.
Notice how the Uninsured used to be “victims” but now the Uninsured are “deadbeats”?
SAME group of people involved but different political needs today, among the elite!
Wait...young people who don’t have the money to buy health insurance aren’t buying it?
NO WAY! WHODASAWDATCOMIN!
Some are victims and some are indeed deadbeats. I know lots of people who simply chose to not insure themselves because they think they're healthy enough, and they figure that if something major happens that someone will wind up treating them anyway.
That aspect won't change, because a $90/year fine is still going to be far more desirable to people than paying hundreds per month.
It’s pretty frustrating to see all the things we were telling them would happen, happen,
and more frustrating that they’re trying to deny that they are happening.
They wouldn’t listen and will keep denying because to do otherwise would be admitting that we were right and they were wrong. And they can’t do that because the reason for being liberal, to them, is to be superior to others.
Folks under 50 who have to decide between a housing/rent payment and an insurance premium. Which do you think they will choose?
Thankfully there are no fines associated with not buying insurance you can’t afford and don’t need.
Young women tend to seek consensus among them selves. They act in bevies. They don’t think for them selves.
Those that are uninsured and lost their policies will react in fear and form a consensus. If that groupthink says don’t go to the web, the Obama cause is lost.
I think that was the whole point of Obamacare.
Let’s face it, it’s tough for those who have pre-existing conditions. I’ve always felt we should do something for them, just like we should help the truly poor and ill.
Unfortunately, that is not the way government works. As long as there is candy in the candy store, immoral government types will find a way to siphon it off into their pockets. I’m always amazed to find out what we are subsidizing - for instance, why should we be paying for birth control? That’s a living expense, not like taking care of, for instance, a poverty stricken person’s cancer.
They obviously missed this website for recuiting the young cash cows:
Young Invincibles is a national organization committed to mobilizing and expanding opportunities for young adults between 18 and 34 years of age on issues like higher education, health care, and jobs
Today's lesson: Getting them to vote for free in POTUS election is much easier then to get them to navigate through a broken website to fill out forms to buy something they dont need or want.
its not %$95 a year *per person*
it’s $95 *per person* OR 1% of INCOME
whichever is greater
and going to 2% of income net year
Its a TAX INCREASE
Still a lot cheaper than buying insurance these days.
Wait...young people who dont have the money to buy health insurance arent buying it?
Especially the ones who are paying on their student loans while making minimum wage if they even have a job in this crappy economy.
and THAT is how the democrats have made the middle class grateful to “only” be paying higher taxes (and being uninsured to boot)
Proof this is just a Dem money laundering operation.
If they really wanted to make sure yutes bought insurance, they would have made the fine equal to what the premiums cost.
That could have been done without up-ending insurance for others without pre-existing conditions. The number with PE conditions is relatively small.
This whole thing could have been done without destroying private enterprise. I have my own theory of why O did it, but now a huge chunk of American business has been swallowed by the public sector.
There is absolutely no reason for a young healthy person to buy coverage, as pre existing conditions are no longer an issue. Why wouldn’t they just wait to buy it once they actually need it? Its far cheaper to pay cash at a gen practice clinic where they post the prices and itemize the cost of everything.
Of course the young women are a major part of he rising costs due to their believing Fluke and others that they should have free birth control.
So for the eight bux a month it would cost them for birth control, and the mammograms that they don’t need until they are at least 50, we all have to bear their costs, multiplied by many dollars due to government handling.
I guess the Brosurance campaign really fell flat in its attempt to bring Obamacare paying customers.
“Why wouldnt they just wait to buy it once they actually need it?”
If they REALLY need it suddenly, it may be too late. Affordable Care Act sets limited times for enrollment, just a few months per year. This opening phase is the exception, allowing longer enrollment times. After this year, the time frame for enrollment is narrowed to just a couple of months per year. If people don’t enroll during those times, they are without coverage for the entire (following) year.
At least that’s my understanding from reading Kaiser and other articles on the ACA.
Here’s the curious layout of the upcoming mess.
First, people are shocked over costs of their new packages, and will spend less at Christmas. Retailers will be disturbed, and recession will be discussed in January.
As the deductible episode unfolds in the first six months of 2014....less money is spread around. Again, this was predicted, but no one grasped that it would be part of a recession.
Third, as July comes around in 2014....there’s the new cost sheets sent out to customers for health care for 2015. Well...it’s going to be disturbing news that older buyers and fewer younger buyers....triggered a fifty to eighty percent increase in your 2015 coverage. This will all come around by election-time in November of 2014. Democratic Senators are in a fairly tough spot...having supported this in 2010 and now part of the increase of debt of Americans.
Spring of 2015 rolls around with the President likely facing sixty Republican senators and a Republican majority in the house. His frustration levels will mount each and everyday....nothing of a legacy will be left by 2016. Eight years, and mounting national debt as the only legacy that can be shown.
My thoughts exactly. Taking care of a few problems, like pre-existing conditions, didn’t mean we had to completely destroy our fantastic health care system, which people travel from all over the world to take advantage of.
I live in FL, and if you go to Disney, it’s full of Canadians and Brits who come here for decent care or surgery and take in Disney while they are here.
Couldn’t they just avoid the Obamacare website completely and sign up with a regular ins carrier once they’re sick as no pre exist conditions matter?
People can avoid the obamacare plans and choose a regular insurance broker, for sure. Don’t know if they have any certain rules for enrollment or not...maybe someone here can comment if it’s possible to wait and enroll when you get sick or hurt.