A new report indicates that instability may be in the offing in the health insurance industry that could have an outsized effect on insurance customers.
According to a recent report issued by American Academy of Actuaries, even though the Patient Protection and Affordable Care Act requires individuals to purchase health coverage, a considerable number of people will choose not to do so. This may be particularly common among younger people.
Should a large number of young people not enroll as predicted, destabilization in the market will occur, causing premiums to rise substantially.
Karen Ignagni, CEO and president of AHIP, indicated that young people who do buy health insurance will feel the pinch, but the cost increase could be experienced by everyone.
"If younger, healthier people choose to forgo purchasing insurance until they get sick or injured, costs will increase for everyone - young and old," said Ignagni.
AHIP has since sent its concerns to the U.S. Department of Health and Human Services.
Theories have abounded on what the ultimate result will be with the PPACA's implementation. It may be wise for insurance agents to expect the unexpected, as many of the prognostications have been fundamentally different from one to the next.