Young invincibles who are used to their parents' plans will no doubt want to continue coverage
The newly insured will arrive in the market with unknown histories and uncertain futures. Plans must predict their health status and health needs to determine their relative risk.
“Like anything, it is never simple,” says Don Hall, principal of consulting firm DeltaSigma LLC, and an MHE editorial advisor. He sees three populations of uninsured:
“Many of those will be young, healthy adults. We will find pockets within these populations that will have a high need, but there won’t be a lot of need in general,” says Hall.
He doesn’t believe the country will see the pent up demand that some have predicted.
“States that have seen expansions have not seen that happen,” he says. “People without a lot of money have been accessing care through federal and rural health centers. Getting insurance only means that they will be using more private providers instead of federally funded health centers.”
Utilization could run steady, except in one subpopulation of covered Americans in the Medicaid expansion-the childless adults who are not working and need treatment for behavioral health conditions. And that is a group for which no one is prepared because of the “drastic shortage of behavioral health resources in this country,” he says.
What will be crucial to the success of the exchanges is attracting the young invincibles who have above average health status as a population. In contrast, there won’t be a lot of marketing directed toward those with chronic conditions or older people, who might be expected to seek out insurance regardless of marketing messages.
“I think it was a brilliant stroke by the Obama administration to cover everyone up to 26 years old on their parents’ health plans,” says Hall. “They have been getting health insurance as adults where before they might have been uninsured, so that when they age out of the plan, the expectation is that they need health insurance. It created the demand that will feed the exchanges going forward.”
Conversations With Perry and Friends
April 14th 2025Perry Cohen, Pharm.D., a longtime member of the Managed Healthcare Executive editorial advisory board, is host of the Conversations with Perry and Friends podcast. His guest this episode is John Baackes, the former CEO of L.A. Care Health Plan.
Listen
Breaking Down Health Plans, HSAs, AI With Paul Fronstin of EBRI
November 19th 2024Featured in this latest episode of Tuning In to the C-Suite podcast is Paul Fronstin, director of health benefits research at EBRI, who shed light on the evolving landscape of health benefits with editors of Managed Healthcare Executive.
Listen
Healthcare hasn't been a priority of the second Trump administration so far, panelists at the Asembia agreed. Medicaid may loom large, though, as the administration and congressional Republicans look for ways to slash government spending as a way of offsetting major tax cuts.
Read More