Question

Outline the insurance market rules and rating factors and how HIPAA impacts the rating factors. Although we've visited this discussion earlier, let's take a deeper dive. Why do you suppose the original laws governing ACA were structured to have higher premiums for young adults?

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Answer 1

Insurance market ratings vary depends on health status, gender, age, use of tobacco, economy, and risk status of the individual. The rules may differ from state to state. The state may be fixed the limitations for the average premium or setting premium evenly across the community. Experience rating is the one where the premium will change depends on the health condition. Some insurance market charges a higher premium for people based on their age and gender. The insurance premium will be higher for people who work in the low-economic industry. HIPPA ensures that the health coverage is transparent and everyone is getting high quality and safe health care.

Currently, ACA has involved in rate restrictions depends on the insurance enrollment in the families and the individual. Already ACA has covered high volume of coverage for the young adults who covered under the parent's plan. ACA has raised the premiums of a young adult who comes under non-group plans or uninsured. Most of the young adults are uninsured because of the increased threat to the rejection of Medicaid expansion. Most young adults have an improper job, need coverage more on the pre-existing condition. So the ACA charges a high premium for young adults to provide high-quality, affordable care.