Despite the health insurance mandate contained in the Affordable Care Act (ACA), nearly a quarter of millennials (ages 18 to 29) lack health insurance, according to a survey conducted by Princeton Survey Research Associates International. That’s significantly more than the 16 percent of Americans overall—in all age groups—who lack health insurance.
Millennials usually enjoy lower premiums for health insurance and are often more likely to receive government subsidies than Americans in other age groups. Their choice to opt out of health insurance in greater numbers than the general population could be related to a sense of invincibility associated with their age group.
The trend is not limited to health insurance. The survey’s findings, based on responses from 1,003 adults in the continental U.S., reveals that millennials are foregoing other kinds of insurance, too. They appear to be underinsured across all insurance lines—including auto, life, homeowner’s, renter’s and disability. Still, the study notes, 60 percent of millennials are confident they are prepared for the financial consequences of being uninsured or underinsured.
What this translates to for agents? A selling opportunity. Prospects need to be informed about the ACA rules allowing coverage under parental policies until age 26. Those who don’t qualify under that ruling should be aware that going without insurance means they’ll pay their total cost of medical care, plus the government fee––2 percent of total household income for 2015 or $325 per adult and $162.50 per child––whichever is higher.
Source: Insurance Networking News