Older Healthy People Won't Buy Coverage

June 24, 2017

The Senate health care plan hugely increases the cost of insurance for older pre-Medicare age people compared to young people, and it eliminates the penalty for not buying insurance, so naturally the NYT tells us:

“That could inadvertently discourage the youngest and healthiest people from buying insurance, leaving a higher percentage of sicker people with expensive treatments on the exchanges, driving up insurers’ costs.”

If you raise the cost of insurance for older people relative to younger people, then we expect it to disproportionately reduce the number of older healthy people who buy insurance, not young healthy people.

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