Young Adults Changing Insurance Status: Gaps in Health Insurance Literacy

Excerpt

Half of adults in the United States experience at least one change in insurance eligibility within a year, with 24% changing eligibility twice in a year [1]. Changes or disruptions in insurance coverage—“churning”—often occur due to transitions in employment, income, college status, or family structure [2‐4]. As many of these life transitions are associated with young adulthood, young adults are at greater risk of interruptions in health insurance coverage than other age groups [5, 6]. Research conducted before the enactment of the Affordable Care Act (ACA) found that young adults experienced more turnover in nongroup health insurance coverage than older adults; only 21% of adults ages 19–35 maintained continuous nongroup coverage from 2008 to 2011 [7]. Although health care reform expanded health insurance coverage for young adults [8, 9], 39% of adults ages 19–29 reported a gap in their coverage in 2011 [6]. Churning among young adults has the potential to undermine the stability of individual health insurance markets and lead to increases in premiums. Insurers must be able to attract and retain younger, healthier enrollees in order to offset the costs associated with older, sicker enrollees. …