Thanks to a key provision, insurers must charge older Americans no more than three times what they charge healthy younger adults.
As a result, insurance costs are soaring for the young. In 45 states and Washington, D.C., young adults will find that their premiums have risen since Obamacare’s implementation, according to an October study by the conservative Heritage Foundation. And in most states, we’re not talking about the kind of slight increases that could be offset by forgoing a couple of lattes a month. Instead, these increases are enough to make young adults squeeze in another roommate — or maybe even move back in with Mom and Dad.
Obamacare requires better coverage than in the past, which also explains the higher premium. But young adults don’t need the added costs. In Arizona, the average monthly premium for a 27-year-old is expected to soar to $261.87 a month, up from $102. It’s the same story in other states, including Georgia (where monthly premiums are increasing by $165), Illinois ($133), Michigan ($138) and Vermont ($216)…
The average household headed by a 25- to 34-year-old had an average income of $65,041 in 2012, according to the Census Bureau. That’s significantly less than the average household income of 35- to 44-year-olds ($83,077), 45- to 54-year-olds ($87,318) and 55- to 64-year-olds ($80,967). Yes, many young adults could qualify for a subsidy. For example, if you are single and make less than $46,000 a year.
Still, young adults don’t have much going for them financially. Many college graduates are saddled with student loan debts. In 2013, student loan debts average $35,200, according to a May Fidelity survey. They’re facing a dismal job market, one where the unemployment rate has been over 7% since December 2008, according to the Bureau of Labor Statistics.