The Affordable Care Act (ACA) strictly limits how much premiums can vary based on a person’s age, which will result in significantly higher premiums for younger individuals and families. This increases the likelihood that younger, healthier people will choose to wait to purchase health insurance until after they get sick or injured, thus driving up costs for everyone else.
A new infographic from America’s Health Insurance Plans (AHIP) highlights the impact of the ACA’s age rating restrictions:
(click infographic to view larger image)
Currently 42 states have age rating bands that are 5:1 or more. Starting January 1, 2014, the law limits the age rating band to 3:1, causing an overnight increase in premiums for younger individuals that live in states that currently have higher age bands.
For health care reform to work, coverage needs to be affordable and there needs to be broad participation in the health care system. To learn more, visit www.AHIP.org/Affordability.