The young and restless: saddled with living expenses, student loans and credit card debt, few young adults consider health insurance a priority.[ILLUSTRATION OMITTED] Ramen ra·men n. 1. A Japanese dish of noodles in broth, often garnished with small pieces of meat and vegetables. 2. A thin white noodle served in this dish. noodles noo·dle 1 n. A narrow, ribbonlike strip of dried dough, usually made of flour, eggs, and water. [German Nudel. and college students go hand-in-hand. For years, the Years, The the seven decades of Eleanor Pargiter’s life. [Br. Lit.: Benét, 1109] See : Time quick and inexpensive meal has been commonplace in dormitories. So, it's no surprise that Blue Cross and Blue Shield Blue Shield A US not-for-profit health care insurer that is a reimbursement intermediary for physicians. Cf Blue Cross. of Minnesota included the popular staple 1. (language) STAPLE - A programming language written at Manchester (University?) and used at ICL in the early 1970s for writing the test suites. STAPLE was based on Algol 68 and had a very advanced optimising compiler. 2. as part of a recent ad for its new product targeting young adults. In the ad, the insurer addresses the demographic's rite of passage rite of passage n. A ritual or ceremony signifying an event in a person's life indicative of a transition from one stage to another, as from adolescence to adulthood. into adulthood by asking the question: "Done with ramen? You're ready for Simply Blue." That's just one of many creative approaches health plans are taking to reach out to 18- to-30-year-olds--one of the fastest-growing sectors of uninsured Americans. A recent Henry J. Kaiser Henry John Kaiser (May 9, 1882—August 24, 1967) was an American industrialist who became known as the father of modern American shipbuilding. Early life Beginning as a cashier in a dry-goods shop in Utica, New York, Kaiser moved many times as he pursued the Family Foundation report cites that almost one-third of young adults are uninsured compared to 18% of the entire non-elderly population. In fact, the uninsured rate for young adults is almost twice as high as the uninsured rate for adults age 30-64. They also are the least likely demographic to have employer-paid health coverage because many have either part-time or temporary jobs or are employed with small employers. But is the demographic that many have deemed "the young invincibles"--because of their belief that they are immune to injury or illness and can forgo health insurance-ready to take on a new responsibility when it comes to protecting their health care coverage? Some states are prolonging that responsibility by passing mandates that extend dependent eligibility under parents' policies for certain young adults. While it's too early to tell what impact that will have on health plans, many carriers are taking matters into their own hands by concentrating efforts and products to young consumers. Assessing a Need While Becky Lewis, a 26-year-old nanny nanny mature goat doe. from Long Island, N.Y., knows the value of having health coverage, she says cost prohibits her from making the purchase. For the past six years, Lewis has been off her parents' insurance policy. She said not only is she concerned about potential mounting bills if she were to get sick or injured in·jure tr.v. in·jured, in·jur·ing, in·jures 1. To cause physical harm to; hurt. 2. To cause damage to; impair. 3. , but she said she hasn't seen her primary care physician since high school. She's not alone. Many young adults are dropped from their parents' policies in public programs when they turn 19. Affordability tops the reasons young adults lack health coverage, said J.P. Wieske, director of state affairs for the Council for Affordable Health Insurance, which tracks mandated benefits mandated benefit Managed care A benefit that a health plan is required by law to provide Examples In vitro fertilization, defined days of inpatient mental health or substance abuse treatment, special-condition treatments. See Benefit, ERISA. . "Many also don't see the value in the coverage." Not only that. "We're competing for their disposable income disposable income Portion of an individual's income over which the recipient has complete discretion. To assess disposable income, it is necessary to determine total income, including not only wages and salaries, interest and dividend payments, and business profits, but also with other things they see as priorities," said Rick O'Connor, head of marketing for Aetna's individual products. A recent survey by the company found that 44% of respondents In the context of marketing research, a representative sample drawn from a larger population of people from whom information is collected and used to develop or confirm marketing strategy. would rather pay their monthly cell phone bill and 70% would rather contribute a portion of their monthly earnings to paying down credit card debt Credit card debt is an example of unsecured consumer debt, accessed through ISO 7810 plastic credit cards. Debt results when a client of a credit card company purchases an item or service through the card system. , building savings accounts Savings Account A deposit account intended for funds that are expected to stay in for the short term. A savings account offers lower returns than the market rates. Notes: or contributing to their 401(k) than pay a health benefits premium. Reaching Out Health carriers are trying to demonstrate the value of health coverage to young consumers. "Many health plans are offering a variety of policies with different cost sharing, premiums and benefits so individuals can examine their own needs and determine which policy is best for them," said Robert Zirkelbach, a spokesman for America's Health Insurance Plans. "And some plans specifically are targeting young adults." What this demographic is looking for Looking for In the context of general equities, this describing a buy interest in which a dealer is asked to offer stock, often involving a capital commitment. Antithesis of in touch with. when it comes to health insurance isn't just lower premiums but value up front and some limited first-dollar coverage, said Wieske. "Some benefit plan designs also are throwing in some limited dental and vision benefits, and offer higher deductibles on the back-end for coverage and protection." Those are some of the features built into Tonik health plans, a product-offered by several health plans in states across the nation--targeted to young adults. "Although coverage varies by state, Tonik covers some routine doctor visits as well as more serious medical necessities. Seeing a dentist dentist /den·tist/ (den´tist) a person with a degree in dentistry and authorized to practice dentistry. den·tist n. A person who is trained and licensed to practice dentistry. , getting eye exams and some benefits for glasses and contacts are covered within the new comprehensive benefit design," said Jerry Slowey, a spokesperson for WellPoint's Consumer Business. [ILLUSTRATION OMITTED] He said Tonik was developed to "overcome many of the reasons why young adults are electing not to purchase coverage, including the belief that coverage is too expensive and/or too complex. We simplified as many steps as possible for the program and offer only three plans, each with a different premium, coverage level and deductible That which may be taken away or subtracted. In taxation, an item that may be subtracted from gross income or adjusted gross income in determining taxable income (e.g., interest expenses, charitable contributions, certain taxes). ." The plans also are meeting a generational need by being marketed via online promotion and advertising because "this audience is a heavy utilizer of the Internet," said Slowey. Carriers also are creating plans for young adults with great price points, Wieske noted. Minnesota Blue's Simply Blue offers "very reasonable premiums and first-dollar coverage for preventative services and doctor office visits, and waives maternity MATERNITY. The state or condition of a mother. 2. It is either legitimate or natural. The former is the condition of the mother who has given birth to legitimate children, while the latter is the condition of her who has given birth to illegitimate children. benefits--something few individuals in the demographic need," said Laura Putnam, director of product management. It also includes value-adds such as fitness center discounts that young adults are looking for. She said the Blues plan relies on everything from direct mailings to online ads and ads on billboards, buses, bar coasters and coffee sleeves to reach out to young consumers. That's paying off. Enrollment in Simply Blue is growing steadily, and she 'said 30% of enrollees, who lacked health insurance prior to the plan, now have coverage. But there's still work to be done in this market, particularly among those ages 21 to 24, said O'Connor. "They're unfamiliar with things like what a broker is, how health policies work, whether they should select an HSA HSA Health Savings Account (US) HSA Human Serum Albumin HSA Human Services Agency (Nevada) HSA Health Services Agency HSA Health and Safety Authority (Ireland) or FSA FSA Financial Services Authority FSA Food Standards Agency (UK) FSA Farm Service Agency (USDA) FSA Financial Services Agency (Japan) because they were always on parents' policies. All of a sudden they now have to deal with these decisions." Aetna is trying to change that through its "Plan for Your Health" public education program and partnership with the Financial Planning Financial planning Evaluating the investing and financing options available to a firm. Planning includes attempting to make optimal decisions, projecting the consequences of these decisions for the firm in the form of a financial plan, and then comparing future performance against Association and the program's Web site that answers many of those questions; with paid search arrangements with Google (Google, Mountain View, CA, www.google.com) The largest search engine on the Web, founded by Larry Page and Sergey Brin, two Stanford University students. In 1996, they developed their "BackRub" search engine, named after its unique page ranking method (explained below). and Yahoo to be part of nearly 3,000 youth-oriented search terms; and by partnering with the association and Wiley Publishing to create Navigating (networking, hypertext) navigating - Finding your way around. Often used of the Internet, particularly the World-Wide Web. A browser is a tool for navigating hypertext documents. Your Health Benefits for Dummies as part of the popular "For Dummies" series of reference books. In August, the company rolled out its new Aetna BodyGuard plans in Illinois, which were designed specifically for young adults and offer varying premiums and levels of coverage and give individuals the opportunity to find the plan that best suits their particular situation. Putnam is a bit more optimistic op·ti·mist n. 1. One who usually expects a favorable outcome. 2. A believer in philosophical optimism. op about how young adults view health coverage. "We're starting to see more young adults seek insurance because many come from a generation where their parents saw health insurance as being very important to them." State Actions Many states are taking their own approaches to covering young adults. Today, 28 states have enacted legislation-what some in the industry call "slacker mandates"--requiring insurers to provide health insurance coverage to certain dependent young adults on their parents' policies up to age 24 or beyond. For example, Delaware and Indiana offer mandates that extend coverage to unmarried dependents to age 24, while Colorado, Maine and West Virginia West Virginia, E central state of the United States. It is bordered by Pennsylvania and Maryland (N), Virginia (E and S), and Kentucky and, across the Ohio R., Ohio (W). Facts and Figures Area, 24,181 sq mi (62,629 sq km). Pop. are a few that have placed coverage limits to those 25 years old. "This has become a bandwagon effect Noun 1. bandwagon effect - the phenomenon of a popular trend attracting even greater popularity; "in periods of high merger activity there is a bandwagon effect with more and more firms seeking to engage in takeover activity"; "polls are accused of creating a , with most of the 28 states having enacted legislation in the past three years," said Susan Laudicina, director of state research and policy for the Blue Cross Blue Shield Association. "With the wave of a pen, states may see this as a way to do some good and not place more costs on state budgets." New Jersey took the biggest leap when it enacted legislation requiring health insurers in the state to extend dependent coverage for certain unmarried residents up to age 31 who are full-time students Full-Time Student A status that is important for determining dependency exemptions. An individual enrolled in a post-secondary institution may be eligible for certain tax breaks. Notes: The full-time status is based on what the individual's school considers full time. or reside in-state with their parents, said Laudicina. Several other states, such as Pennsylvania and Arizona, have health reform proposals and commission recommendations to extend dependent coverage. The upcoming election may place a federal spotlight on the issue. Democratic presidential candidate Barack Obama's platform calls for young people up to age 25 to continue coverage through their parents' plans. Massachusetts--already a lone rider in its approach to universal health care--has taken its own spin on the issue. The state developed a specially designed, lower-cost health insurance product for those 18-26. [ILLUSTRATION OMITTED] Feeling the Effects So far, in states such as New Jersey, dependent mandates have had only minimal impact on health plans. Robert Meehan, vice president of consumer and senior markets for Horizon Blue Cross Blue Shield of New Jersey, said that's because in his state, take-up rates have been relatively low. "Many parents still look at COBRA cobra, name for African and Asian snakes of the family Elapidae that are equipped with inflatable neck hoods. The family also includes the African mambas, the Asian kraits, the New World coral snakes and a large number of Australian snakes. , but that's 102% of the group rate for insured and self-insured markets and usually offer very rich benefits that a typical healthy 21-to-30-year-old doesn't need," he said. Wieske said mandates come with a price, requiring insurers to pay for care consumers previously funded out of their own pockets. According to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. the Council for Affordable Health Insurance research, mandated benefits currently increase the cost of basic health coverage from 20% to 50%, depending on the state. Many plans say time will tell. "But for the short term it's driving carriers crazy on the administrative side because they have to spend money to change systems and market this," said Meehan. "For most people, they'll pay higher premiums but won't be using it and won't cover something they want, like health club memberships. But that's not the main concern. Rather it's about choice and getting a product that fits this age group," said Laudicina. Good for the Group? Are extended dependency mandates the answer to covering more young adults, or just prolonging them from becoming policyholders? "We're probably not losing or gaining business from this," said Laudicina. "But it costs a lot for young adults to stay on parents' major medical comprehensive plans with rich benefits they often don't need." In fact, some experts debunk de·bunk tr.v. de·bunked, de·bunk·ing, de·bunks To expose or ridicule the falseness, sham, or exaggerated claims of: debunk a supposed miracle drug. the myth that staying on parents' policies is a more affordable solution. "Research shows that individual coverage often is more affordable and accessible than is widely believed, especially for young adults," said AHIP's Zirkelbach. What's needed instead, Laudicina said, is "a mix of more consumer-choice plans that appeal to younger adults, complete with lower monthly premiums, basic and first-dollar coverages for key benefits, and interactive Web sites to purchase policies and get information. "Young adults should want to get their own health insurance, just like establishing their own credit history. The better they are, before problems hit and they develop health conditions," she said. Wieske also fears mandates have a hand in rising health care costs. "With more than 1,900 benefit mandates across the country, that adds additional requirements on plans and drives up cost of coverage. One of the things states need to consider is how that will impact individuals' ability to afford coverage." Onward on·ward adj. Moving or tending forward. adv. also on·wards In a direction or toward a position that is ahead in space or time; forward. Bound Laudicina believes "there's still room for growth" and more states will eventually look to pass their own mandates. "But, I'm not sure the state needs to be the main principal actor here," she said. Instead, said Zirkelbach, what's needed is a private-public approach to health care reform. "Something that combines the best of both worlds: the resources in the public sector and the innovation and efficiency of the private sector." As for what mandates are doing to help rectify rec·ti·fy v. 1. To set right; correct. 2. To refine or purify, especially by distillation. the nation's uninsured problem, Laudicina said, "States mandating coverage on parents' policies isn't innovative, but rather just delays the day when they have to get insurance on their own. Keeping the status quo [Latin, The existing state of things at any given date.] Status quo ante bellum means the state of things before the war. The status quo to be preserved by a preliminary injunction is the last actual, peaceable, uncontested status which preceded the pending controversy. isn't the only or best way to do things." * State of the Market: Young adults continue to be one of the fastest-growing sectors of America's uninsured. * What's Being Done: Health plans are beginning to design and market products specifically to young consumers. * What Lies Ahead: Today, 28 states have mandated legislation to extend dependent coverage until age 24 or beyond. Learn More Aetna Health and Life Insurance Co. A.M. Best Company # 08169 Distribution: Brokers, consultants, retail networks (pharmacy pharmacy, art of compounding and dispensing drugs and medication. The term is also applied to an establishment used for such purposes. Until modern times medication was prepared and dispensed by the physician himself. In the 18th cent. products) Blue Cross and Blue Shield of Minnesota A.M. Best Company # 60077 Distribution: Internal agents, independent agents, direct Horizon Healthcare Services Inc. A.M. Best Company # 64022 Distribution: Brokers, benefit consultants, direct WellPoint Inc. A.M. Best Company # 58180 Distribution: Agents, brokers, in-house sales For ratings and other financial strength information visit www.ambest.com. Watch a video about this article on bestreview.com/videos [GRAPHIC OMITTED]
Delayed Departure
Some of the state laws that increase the age up to which certain
young adults are considered dependents for insurance purposes:
Year Law Passed Limiting Age of Applies to
State Or Implemented Defendant Status Non-Students?
Colorado 2006 25 Yes
Delaware 2006 24 Yes
Idaho 2007 25 No
Indiana 2007 24 Yes
Maine 2007 25 Yes
Maryland 2007 25 Yes
Massachusetts 2006 25 Yes
Minnesota 2007 25 Yes
New Hampshire 2007 26 Yes
New Jersey 2006 31 Yes
New Mexico 2005 25 Yes
Rhode Island 2006 25 No
South Dakota 2005 24 No
Texas 2003 25 Yes
Utah 1994 26 Yes
Washington 2007 25 Yes
West Virginia 2007 25 Yes
Source: The Commonwealth Fund
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