Earlier this week, the U.S. Department of Health and Human Services released a report that stated about 70 percent of Obamacares customers are 35 years of age or older, indicating that U.S. health care overhaul is initially attracting a less healthy population that may drive up insurance premiums. About 24 percent were 18- to 34-year-olds, and about one-third were 55 or older.
Moodys released a comment identifying two challenges related to those in the 18-34-year-old age group that may be problematic for health insurers. The first is related to the health status of those who have signed up. We suspect that the enrollees may very well be the least healthy of the 18-34-year-old age group, or those who have a specific need for health insurance coverage in the coming year. If this is the case, this group would not provide the financial support insurers need to cover the higher medical costs of the older enrollees.
