An analysis released today (PDF) from the consulting group Avalere Health downplays some of the concerns that the healthcare reform law will lead to insurance rate shock for younger people. Avalere argues that potentially higher premiums will be offset by new federal subsidies for people buying coverage on the state exchanges.
“Many of these individuals and family will benefit from new subsidies designed to increase affordability for those earning between 133 and 400 percent of poverty,” the report states. However, Avalere researchers also say that for younger and healthier consumers who currently have coverage in the individual market, the minimum premium for an individual policy will increase in most if not all markets.”
Rate shock fears have been used as ammunition by opponents of the Patient Protection and Affordable Care Act to argue that the law will negatively impact younger people in the form of higher premium rates. The insurance industry also has repeatedly warned of higher rates due to the ACA's insurance rules.