>>Carriers need as many young insured as possible to keep overall premiums down.<<
Under Obamacare that’s true, and it’s also true under employer group plans, but it’s not true under this proposal. Young people should be charged what an actuary determines their risk presents.
Well, that would be the case in a total underwriting market.
In many states, actuaries have probably figured that young people are generally lower risks, and hence give them a better premium classification.
If they do have a serious/expensive health issue, they would probably need to go into the HRP. If they later can qualify for regular insurance, they can go with the standard risk pool.
Probably four or five premium bands based on age would be sufficient to simplify things. Total underwriting can also increase premium costs as every policy would be a one-off.
The same is true of coverage mandates....keep it simple.
How do you figure? What is it about this plan that will attract young and healthy individuals to buy insurance that the Obamacare plan did not?