SOURCE: AgileHealthInsurance

November 19, 2015 09:07 ET

Priced Out of ACA Plans, Millennials Seek More Affordable Health Insurance Options

New Study Quantifies Double-Digit Premium Savings Driving Growth in Term Health Insurance Market

MOUNTAIN VIEW, CA--(Marketwired - Nov 19, 2015) - As premiums for Obamacare plans continue to rise, millennials are seeking more affordable options in the term health insurance market. A study released today by quantifies the double-digit savings driving this trend.

Average premiums for Obamacare exchange plans increased by double digits from 2015 to 2016. Bronze plans, which are generally the least expensive type of Obamacare plan, had premium hikes of 11 percent in 2016. Given that term health insurance premiums were substantially less expensive than unsubsidized premiums for Obamacare bronze plans in the 2015 plan year, AgileHealthInsurance examined premiums for term health insurance and Obamacare plans to determine how prices compare for 2016. The analysis compared only term plans with lower deductibles and out-of-pocket caps than the average bronze plan.

On average 30-year-olds would pay 28 percent less for their term health insurance than for an Obamacare bronze plan, even when the cost of paying a penalty is included. Term health insurance plans are not qualified health plans under the Affordable Care Act so enrollees in term insurance plans have to pay the Obamacare uninsured penalty unless they qualify for an exemption. However for younger enrollees, term insurance combined with the cost of the uninsured penalty is still considerably less expensive than Obamacare. For a household income of $20,450, a 30-year-old male paying the uninsured penalty would save $76 a month with term insurance and a 30-year-old female would save $47 a month.

"Young people are savvy when it comes to buying health insurance, especially when shopping online," said Sam Gibbs, executive director of "As some millennials struggle to afford Obamacare premiums, they are doing their homework and finding term health insurance often makes financial sense, even if they aren't exempt from the uninsured penalty."

Premiums were collected for male and female non-smokers ages 30, 40, and 50 in the most populous city in each of the 38 states that will use in 2016. Average premiums for Obamacare bronze plans were compared to average premiums for term insurance plans available on

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

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 from the tax. 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

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

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