Pricing Out the Decades of Adult Life: How Health Insurance Premiums Grow with You
There’s nothing like receiving a health insurance rate increase in the mail to celebrate a birthday. A comprehensive study by GoHealthInsurance reveals that monthly premiums grow exponentially with age and highlights how the Affordable Care Act (ACA) will change this by 2014.
“We knew age affected premiums, but we were interested to see exactly how much on a state and nationwide level,” said Mark Colwell, Consumer Marketing Manager at GoHealthInsurance. “Before health reform kicks into full effect 2014, pending the Supreme Court decision of course, every state has their own laws govern how insurance companies set price by age. What we wanted to do with this study is offer consumers a look at how health insurance rates differ today and what to expect after 2014.”
GoHealth took an in-depth look at age rating — the practice of varying health insurance premiums based on age ― in all 50 states for 20, 30, 40, 50 and 60 year old males. 
The study found that:
- Health insurance premiums paid by 60 year olds were more than five times higher than those charged to a 20 year old in the same state.
- Only a handful of states have laws that limit age rating.
- Seven states are now compliant with benchmarks set forth in the ACA which takes effect in 2014.
- Required changes by health care reform will increase premiums for young adults similar to Vermont.
So what can be expected from the Affordable Care Act that President Obama signed last year? The site HealthCare.gov actually has a great timeline feature showing the changes by date, and what changes are happening when. The slider allows you to scroll over dates and see what changes happened when, and what changes are coming up. Some highlights include a 50% discount for name-brand drugs in the Medicare Part D coverage gap, jokingly referred to as the 'Doughnut Hole' along with increased coverage for young adults, business tax credits and more.
But unfortunately now, no matter how hard you wish for lower premiums on your birthday, the reality is they too are growing larger in numbers with you each year.
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