How much does health insurance cost for Millennials?
Who are the Millennials, you ask? It’s a slippery category, but the Millennials (also known as “Generation Y”) are today’s young adults, between the ages of 18 and 33 or so.
Millennials’ participation in the health insurance market in 2014 will be key to the success of Obamacare because you need young, healthy people in the mix to keep costs down for the rest of us.
Will the Millennials actually follow the health reform rules and dive into the health insurance pool in 2014? We’ll explore that question more in the months to come.
Today, however, let’s start by looking at what Millennials actually pay for health insurance when they buy coverage on their own.
Last November, eHealth published its annual Cost and Benefits report. The 2012 report was based on a nationwide sample of over 395,000 health insurance plans from various insurance companies, all purchased through eHealthInsurance.com.
According to the report, the overall average cost of an individual health insurance plan in 2012 was $190 per month.
When you break down average monthly premiums by age, however, you find that younger folks – Millennials – tend to pay substantially less than their Generation X and Baby Boomer counterparts.
- Millennials between the ages of 18 and 24 paid an average of $122 per month for individual coverage
- Millennials between the ages of 25 and 34 paid an average of $148 per month for individual coverage
That’s pretty affordable. By contrast, older folks pay substantially more:
- People between the ages of 35 and 44 paid an average monthly premium of $202
- Between the ages of 45 and 54 the average monthly premium was $265
- Between the ages of 55 and 64 the average monthly premium was $329
That last figure, you’ll note, is more than $200 more per month than the average monthly premiums paid by people in the 18-24 age range.
Image by Flickr user CollegeDegrees360