This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Young Americans Will Not Bear Cost Burden Of Covering Older Americans Under Health Reform

Reason Given By Insurers for Expected Higher Premiums Is Not Founded

SUNNYVALE, Calif., April 11, 2013 /PRNewswire-USNewswire/ -- A new health insurance pricing report from HealthPocket, Inc. shows that current premiums are already largely in line with the Affordable Care Act's (ACA) age-based restriction on pricing, and insurer claims of related price increases for young people due to the restriction are unfounded. At the same time, gender-based pricing equality required by the health reform law will have a significant effect on pricing in most states.

Currently in most states, a health insurance premium is based on age as well as other factors such as gender, health, and smoking status. However, starting in 2014, the ACA will limit how much a health plan can charge in regards to age, with the oldest not paying more than three times the premium amount of the youngest that live in the same region and share the same status as smokers or non-smokers.

The study shows that average premiums across the nation increase 260 percent for 63-year-olds versus 23-year-olds under current plans, well under the 300 percent cap allowed under the ACA. Fourteen states currently exceed the ACA cap with the four highest above 350 percent of the limit including Alaska, Delaware, Oregon, and Wyoming.

"The biggest unknown right now for healthcare consumers is how health reform will affect what they pay for health coverage starting in 2014," said Bruce Telkamp, CEO of HealthPocket. "It is encouraging to know that age rating requirements in the health law will not be a major driver of increases to premiums."

The HealthPocket report also found the average premium for a 23-year-old man was nearly 20 percent less expensive than the average premium for a 23-year-old woman. The ACA will eliminate gender distinctions so a same age male and female nonsmoker in the same city will pay the same rate.

1 of 2

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 18,030.21 +6.04 0.03%
S&P 500 2,081.88 -0.29 -0.01%
NASDAQ 4,773.4720 +8.0480 0.17%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs