News Release
Rational Health Insurance for Young Adults
2/11/08 - A South Carolina Democratic Congressman published an editorial on the Web titled "Rational Health Insurance for Young Adults" that proposes that young adults over age 19 who are not students should still be required to remain eligible for their parents' health insurance. The proposal runs contrary to the basic premise of our legal system and business logic with regard to treatment of young adults.
As absurd as this Congressman's proposal sounds, the motives are genuine. A significant portion of young adults who graduate from school without a job that provides health insurance do not purchase health insurance on their own. But the legislative proposal misses the point. Young adults have plenty of opportunities to continue coverage at a cost substantially less than the cost of coverage under their parents' policies. Their is no logical basis to have the parent's employers bear the burden of providing health insurance to the adult children of its employees. The idea is so silly that it does not even warrant serious debate. We will simply assume that the proposal won't fly with a majority of lawmakers in South Carolina or anywhere else.
The reason so many ignore health insurance at this age is, frankly, it is not important to them at this stage in life. Other articles on our Web site discuss the observation that health insurance purchase decisions for this age group are primarily controlled by the mother of the young adults. Our experience shows that the mother is directly or indirectly responsible for more than 75% of the health insurance purchase decisions of young adults from age 18 to 21.
The best response is to better educate consumers - both parents and young adults - on the importance of health insurance and make it seem like a good deal on a cost/benefits basis. Once people realize that they can get coverage quickly, easily and at little cost, many will make the decision to be insured. Governments, whether federal or state, should stay out of the health insurance business.