NEW YORK (MainStreet) -- Millennials are still rejecting Obamacare and willing to pay tax penalties for not signing up. This age cohort has precious little knowledge on the basics of health insurance and is therefore struggling to understand and enroll in a financially appealing plan.
The Supreme Court's upholding of The Affordable Care Act (ACA) in a 6-3 decision last month means that Millennials are required to fall into the whirlpool of the public health care services. But ACA health insurance costs might still be a large impediment to the widespread adoption among Millennials.
"The mission of the Affordable Care Act was to get healthier and younger people into the system to help offset the premiums," said Parker Beauchamp, 36-year-old CEO of Wabash, Ind.-based INGUARD, a national risk management and health insurance firm.
Of course, that didn't go exactly to plan. Beauchamp says the negative side of the ACA is that younger people use less of their health insurance while public and private health insurance costs to rise. Premium costs increased in 65% of existing policies in 2015 compared to 2014, according to a study from the McKinsey Center for U.S. Health System Reform. But Healthcare.gov facts also show that young people aged 18 to 34 made up 24% of Obamcare enrollees in the first three months of Obamacare's second enrollment period at the end of 2014. This figure stayed consistent in January and February with about 1 million Millennials on Obamacare and has gone slightly up to about 30% enrollment in 2015.
Though Millennials are certainly participating in this health care reform initiative, they're definitely not enthusiastic.
In fact, 62% of people report that their health insurance premiums are more costly than they can comfortably afford while some 73% say their annual deductibles are more costly than they can comfortably afford, according to an eHealthInsurance survey that explored young adults' attitudes toward health insurance costs and the ACA. The survey was conducted in April and May 2014, following the ACA's first open enrollment period which reported guidelines for insurers to justify an increase of 10% or more in rates.