According to the Kaiser Family Foundation, young adults – those aged 19 to 29 – have the highest uninsured rate of any age group in the United States. This age group comprises 30 percent of the overall uninsured population in the country. Why might that be? Let's consider the facts:
- There is no age-specific government health plan for this group. Children (those younger than 18) have CHIP. Seniors (65 and older) have Medicare. But for those in between, no program specifically addresses their lack of insurance. Additionally, because of restrictions on qualifications for Medicaid, few young adults qualify.
- Young adults who had coverage while growing up are being dropped from their parents' health plans. If they aren't attending college, they will lose their insurance when they turn 18. If they are attending school, they may still qualify for a few years, but most young adults lose their insurance coverage for the first time in their lives sometime between the ages of 18 and 25.
- Half of all uninsured young adults work full time, and 18 percent work part time. However, many uninsured young adults work for small businesses that are less likely to offer health coverage to employees. Even if their employer offers affordable coverage, many young adults will encounter the waiting periods that new employees often face before they can enroll in employer-sponsored insurance. Moreover, young adults who are offered coverage through an employer may have difficulties paying their share of the insurance premium since they are just starting their careers and have lower incomes than older adults. The average employee share of annual premiums for individual coverage rose from $334 in 2000 to $779 in 2009.
- Only 25 percent of young adults are married, meaning they are less likely to be able to purchase coverage through their spouse's employer.
So what does this mean for you? You could do nothing – after all, the health reform legislation currently in the works does include provisions for extending coverage to young adults. Or, you could look at these numbers as an opportunity to market individual health insurance to a demographic that desperately needs it.
In 2007, one in 10 uninsured individuals had incurred more than $700 in out-of-pocket medical expenses. In addition to saving them money, health insurance can help young adults stay up-to-date with routine preventive care and stay healthy; the Kaiser poll showed that about one-quarter of young adults in excellent or very good health are uninsured, compared to 38 percent of those in fair or poor health.
What to sell them
