SOURCE: AgileHealthInsurance

AgileHealthInsurance

December 15, 2015 09:00 ET

As "Young Invincibles" Examine Coverage Options, Many Opt Out of Obamacare

Young Adults Find More Affordable Coverage Outside Government Marketplaces

MOUNTAIN VIEW, CA--(Marketwired - Dec 15, 2015) - A study released today by AgileHealthInsurance.com shows that 26-year-olds with incomes between $27,015 and $75,630 would pay less for term health insurance than Obamacare, even with subsidies and the uninsured penalty factored into the costs. Since term health insurance plans are not qualified health plans under the Affordable Care Act, term health insurance enrollees pay the Obamacare uninsured penalty unless they are among the millions that qualify for an exemption. Yet, term health insurance plans usually have much lower premiums than Obamacare, meaning that enrollees still see cost savings even with the penalty. 

When factoring in premium subsidies and the uninsured penalty, term insurance had the greatest cost advantage over Obamacare at household incomes near $38,000. For a 26-year-old female with a household income of $38,250, the least expensive term insurance plan was $67.80 less expensive per month than the least expensive subsidized Obamacare bronze plan. For a 26-year-old male with the same household income, term insurance was $73.50 less expensive per month.

"The unintended consequence of requiring one-size-fits-all benefits for Obamacare plans is that they become very expensive," said Sam Gibbs, executive director of AgileHealthInsurance.com. "For millennials who don't use those expensive benefits, term health insurance provides a compelling and more affordable solution."

The cost advantages of term health insurance may prove to be particularly attractive to 26-year-olds leaving their parents' health coverage, given the age group's general trend towards good health and fewer pre-existing conditions. Ideally, any health plan decision should be informed by a consumer's health considerations and anticipated benefit needs. When choosing a plan, it's important for consumers to consider not only premiums, subsidies and penalties, but also out-of-pocket costs, including deductibles and coinsurance fees.

Term health insurance plans are a compelling alternative for dissatisfied Obamacare consumers who struggle with the cost of those plans. Term insurance plans have broader provider network coverage than most Obamacare plans, so enrollees can go to most doctors and still be covered. Out-of-network coverage is available in 100 percent of term insurance plans sold on AgileHealthInsurance.com.

Term health insurance represents a distinct category of health insurance and does not provide identical coverage as Obamacare plans, and benefit and eligibility differences contribute to the cost savings observed. Consumers apply and, depending on their health status (including pre-existing conditions), they may or may not be eligible for specific plans. Consumer applications are approved or rejected based on health status (including the nature of pre-existing conditions). Additionally, with term health insurance, consumers may still be subject to the Obamacare Tax unless they qualify for one of several exemptions. The cost of term health insurance is so affordable that even for some consumers facing the tax penalty, the combination of penalty and premium is still less expensive than an unsubsidized Obamacare premium. Read the article on AgileHealthInsurance's Learning Center at www.AgileHealthInsurance.com.

AgileHealthInsurance is the internet's first site dedicated to helping consumers understand the benefits of Term Health Insurance. These new plans are the culmination of extensive research on health insurance needs in the Affordable Care Act era and consumers will be able to find the lowest prices for these plans on AgileHealthInsurance. AgileHealthInsurance also provides best-of-class plan comparison and online enrollment tools to accompany these new plans. Additional information about AgileHealthInsurance can be found at www.AgileHealthInsurance.com.

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