Health Insurance Articles
Knowing How Your Age Group Affects Your Health Insurance Coverage
2010-03-24
The fact of the matter is that the older you are, the more you are going to pay for health insurance coverage. This is a difficult pill to swallow in a country with a struggling economy and when it is not guaranteed that an individual policyholder will use medical services anymore than another, simply based on their age. Add to that the fact that many states mandate health care coverage for individuals or else a fine will be levied. Many people find themselves having to reduce their coverage to the bare minimum, which does little to offset costs in the case of a serious illness or injury.
A recent article by the Boston Globe found that in Massachusetts, a 62 year old customer was given a health insurance quote with nearly double the monthly premium of a 32 year old for the same policy, and paid half as much over someone who was 42. Arguments from insurance companies are that older people use the health care system on a more frequent basis and are, in general, a greater risk to insure. AARP and other groups argue that insurance premiums should be based on the individual, not any broad factor such as sex, age, or nationality.
While it is possible for older people to find coverage that will take care of all their needs, it often comes at too high a cost to bear, especially if they no longer work full-time or have a limited income. As a result, many older individuals are cutting back their health care plans to the absolute minimum. This allows them to avoid the fine imposed in many states for not having a current health insurance policy. While it is possible to have this fine waived if the cost of health insurance is simply too high to bear, that solves nothing except temporarily limiting the money paid out by the individual. Should they become ill or require any sort of injury treatment, they will be left with bills they cannot possibly pay, as minimum coverage is just that - it covers only the very basics, leaving the consumer to pay any other expenses out-of-pocket. AARP is also arguing that these out of pocket costs should be taken into account in determining if insurance is too expensive for individuals, but this is again a stop-gap measure.
There is some hope on the horizon to alter the way that insurance premiums are calculated. National health insurance is currently being debated, and many companies are under pressure to change their pricing structures. However, the current fact remains that as you age, health insurance eventually becomes a far more significant cost.
