• The Heritage Network
    • Resize:
    • A
    • A
    • A
  • Donate
  • Sorry, Obamacare: Private Health Exchange Captures Young Adults

    Pete Souza

    Pete Souza

    As Obamacare marketers step up efforts to enroll more young adults,  private health exchange eHealth announced that four out of every 10 of its new customers in the final quarter of 2013 were in that coveted category.

    According to Kaiser Health News, eHealth CEO Gary Lauer said in an earnings call last week that 40 percent of 169,000 customers who used his online marketplace to buy health insurance from October through December were young adults.

    An often sought-after demographic by insurers because they are typically healthier and cheaper to insure, young adults are especially important for Obamacare. The health law’s state and federal exchanges need enough young adults (originally, 40 percent of the entire participant pool) to balance out costs from sicker and older enrollees, who no longer can be turned away for coverage for any reason.

    As of February 1, the Health and Human Services Department said 3.3 million Americans had signed up for a plan on Obamacare’s exchanges, with 25 percent of them between ages 18 and 34. However, Obamacare officials have not specified how many had paid their first month premiums, the industry norm for standard enrollment.

    Meanwhile, the Obama Administration launched several pitches and initiatives to spur young adults to enroll. Most recently, First Lady Michelle Obama appeared on The Tonight Show, referring to young adults who think they are invincible as “knuckleheads” and encouraging them to get coverage on HealthCare.gov.

    By the end of 2013, eHealth, which offers a variety of private health plans and collects commissions from insurers, reported total estimated membership was 1,244,900 — an increase of 27 percent from 982,900 a year earlier. The Mountain View, Calif.-based company’s revenues for the fourth quarter shot up to $54.2 million, 20 percent higher than $45.3 million for the same quarter in 2012.

    This story was produced by The Foundry’s news team. Nothing here should be construed as necessarily reflecting the views of The Heritage Foundation.

    Posted in Front Page, Obamacare [slideshow_deploy]

    Comments are closed.

    Comments are subject to approval and moderation. We remind everyone that The Heritage Foundation promotes a civil society where ideas and debate flourish. Please be respectful of each other and the subjects of any criticism. While we may not always agree on policy, we should all agree that being appropriately informed is everyone's intention visiting this site. Profanity, lewdness, personal attacks, and other forms of incivility will not be tolerated. Please keep your thoughts brief and avoid ALL CAPS. While we respect your first amendment rights, we are obligated to our readers to maintain these standards. Thanks for joining the conversation.

    Big Government Is NOT the Answer

    Your tax dollars are being spent on programs that we really don't need.

    I Agree I Disagree ×

    Get Heritage In Your Inbox — FREE!

    Heritage Foundation e-mails keep you updated on the ongoing policy battles in Washington and around the country.