http://www.healthinsurancecolorado.net/blog1/2009/10/30/health-insurance-premiums-and-age/ Research and discussion of the Colorado health insurance industry and the healthcare crisis in America. Sat, 20 Mar 2010 01:19:45 +0000 http://wordpress.org/?v=abc hourly 1 http://www.healthinsurancecolorado.net/blog1/2009/10/30/health-insurance-premiums-and-age/comment-page-1/#comment-14142 Louise Tue, 03 Nov 2009 22:07:14 +0000 http://www.healthinsurancecolorado.net/blog1/?p=1399#comment-14142 Don, you make good points. The spiraling cost of health care is an issue that has to be addressed, and seems to be one of the most difficult parts of the reform efforts. As far as premiums and incomes both increasing with age, what I was getting at was the relative ability and willingness of older workers to pay more for health insurance than younger workers. A 50 year old employee is much less likely to be in a low-paying, entry level job than a 22 year old employee at the same company. Senior level, higher paying jobs tend to come with time, and are rarely available to young workers. This is different from basic cost of living raises that go along with staying in the same position for years at a time (and as you mentioned, really just keep pace with inflation). Obviously not all workers get promotions, but in general, older workers tend tend to earn more than younger workers, simply because of experience. Coupled with possible health conditions that tend to creep in with age, older workers are not only earning more than younger workers, but they are also more acutely aware of the need for health insurance, and less likely than younger workers to choose to spend their money on something else and go uninsured. Don, you make good points. The spiraling cost of health care is an issue that has to be addressed, and seems to be one of the most difficult parts of the reform efforts.
As far as premiums and incomes both increasing with age, what I was getting at was the relative ability and willingness of older workers to pay more for health insurance than younger workers. A 50 year old employee is much less likely to be in a low-paying, entry level job than a 22 year old employee at the same company. Senior level, higher paying jobs tend to come with time, and are rarely available to young workers. This is different from basic cost of living raises that go along with staying in the same position for years at a time (and as you mentioned, really just keep pace with inflation). Obviously not all workers get promotions, but in general, older workers tend tend to earn more than younger workers, simply because of experience. Coupled with possible health conditions that tend to creep in with age, older workers are not only earning more than younger workers, but they are also more acutely aware of the need for health insurance, and less likely than younger workers to choose to spend their money on something else and go uninsured.

]]> http://www.healthinsurancecolorado.net/blog1/2009/10/30/health-insurance-premiums-and-age/comment-page-1/#comment-14141 Don Levit Mon, 02 Nov 2009 20:24:12 +0000 http://www.healthinsurancecolorado.net/blog1/?p=1399#comment-14141 While health insurance is certainly helpful in defraying costs, it can also be hazardous to one's health. Hazardous in that if the goal of health insurance is to cover the costs, even if those costs are higher than the "market can bear," then health insurance is more destructive than constructive. In addition, health insurance is hazardous in that premiums are pay-as-you-go, when we know that age is correlated to claims, exponentially as we age past 40. Incomes typically do not grow exponentially, as they typically just keep pace with inflation. Don Levit While health insurance is certainly helpful in defraying costs, it can also be hazardous to one’s health.
Hazardous in that if the goal of health insurance is to cover the costs, even if those costs are higher than the “market can bear,” then health insurance is more destructive than constructive.
In addition, health insurance is hazardous in that premiums are pay-as-you-go, when we know that age is correlated to claims, exponentially as we age past 40.
Incomes typically do not grow exponentially, as they typically just keep pace with inflation.
Don Levit

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