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Understanding Health Reform and How It Affects Your Young Adult

Young Adults ages 19-29 represent the highest number of people in an uninsured age group of any in the United States, and represents almost 30 percent of the overall population. Generally speaking, the provisions in the health care reform act don’t specifically target younger adults, they’ll be most affected by the changes. Legislation passed in 2014 that required the following changes to legislation:

  • Private Insurers are now required to cover qualifying young adults up to age 26 so that they may remain on their parents plan
  • Tax Credits are available to those small businesses that do expand health care benefits to employees currently without.
  • Temporary high-risk groups are to be created to young adults with preexisting conditions who have been uninsured for six months can obtain coverage.

For more information about the provisions of the health care laws, click here (http://www.rwjf.org/en/research-publications/find-rwjf-research/2012/02/can-expanding-dependent-coverage-to-young-adults-reduce-the-numb.html)

In fact, very inclusive provisions in law have increased coverage options:

  • Medicaid will be expanded to 133 percent of the poverty level ($14,404 for a single individual) under the age of 65, and states have the option to match funds.
  • If young adults don’t have health coverage they will be able to purchase affordable insurance through the workplace offering premium and cost-sharing credits for those who qualify
  • Employers will have to pay fees for other employees that receive tax credits for health insurance
  • Health insurers are no longer allowed to deny coverage due to health status or even to charge higher premiums for their services.

Unintentional Beneficiaries

Expanding coverage for all Americans extends coverage to a high group of uninsured young adults’ rate plans, making them key beneficiaries of this legislation, even if it was unintentional. This means those with limited incomes will be able to afford or gain coverage to receive the care they need.

The truth is that over half of all uninsured young adults are in a household that’s income level is below 133 percent of poverty level and will be eligible for Medicaid based on their income. These coverage’s provide defined sets of essential benefits that are necessary to give young adults, like: mental health, prescription drug coverage, teeth and eye doctors, and more.

Understanding the Need

As a parent, we understand that young adults being uninsured puts them both at physical and financial health risks. The only ways to reform the current system is to use a wide variety of mechanisms to help reach out to expand access to affordable health coverage, because gaining health coverage for all uninsured young adults and other uninsured Americans, because the current system is completely unaffordable for most. Soon, gaining health insurance will naturally extend medical care and provide the financial security you want for your child as they grow through their young adult phase and become more and more adult, eventually living their adult lives.

 

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