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Age tiers and health insurance
Old 09-20-2013, 08:00 AM   #1
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Age tiers and health insurance

I just got a letter from my health insurance, Capital Blue Cross, saying my age on 1/1/2014 will put me in a new age tier and my premium would go up slightly.

I will "only" be 59 on 1/1/2014, though. I thought 60 was the age for a new tier to begin.


I can't find anything googling about age tiers and when they begin.

Anyone know?

Thanks
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Old 09-20-2013, 08:13 AM   #2
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IIRC for some health insurers each year is a new tier. I know one health insurance policy I looked at last year had different premiums based on age in one year increments.

Life insurance is usually quinquennial bands.
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Old 09-20-2013, 08:27 AM   #3
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Currently, there are no regulations and insurers are free to build whatever age bracket they wish, and price however they want.

Beginning Jan 1, PPACA regulations allow for a 3X spread for age factors between the lowest and highest premium. Insurers can still build age brackets as they wish, but so far, from the data we have seen on the state exchanges the brackets are very narrow, with many small age based steps and no large price increases.
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Old 09-20-2013, 08:39 AM   #4
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Quote:
Originally Posted by MichaelB View Post
Currently, there are no regulations and insurers are free to build whatever age bracket they wish, and price however they want.

Beginning Jan 1, PPACA regulations allow for a 3X spread for age factors between the lowest and highest premium. Insurers can still build age brackets as they wish, but so far, from the data we have seen on the state exchanges the brackets are very narrow, with many small age based steps and no large price increases.
First and foremost, thanks for all your insightful posts on PPACA, they are most helpful. I know this forum community is grateful.

The ranges I have seen are (much) broader than I expected. The RI rates (below) fall well within the 3X requirement, but they seem pretty broad IMHO. What am I missing (probably a lot)?
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Old 09-20-2013, 10:05 AM   #5
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Originally Posted by Midpack View Post
First and foremost, thanks for all your insightful posts on PPACA, they are most helpful. I know this forum community is grateful.

The ranges I have seen are (much) broader than I expected. The RI rates (below) fall well within the 3X requirement, but they seem pretty broad IMHO. What am I missing (probably a lot)?
Thanks. It really has been a community effort, and a very positive one at that.

I don't think you're missing anything. Looks to me like RI state officials responsible for administering this took the initiative to define how age granularity should be broken down and also how the price should be segmented, because the steps and price differentials are the same for all the insurers and policies. It is 3X, though, comparing the two clip levels (21-24) vs (64+)
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