Why Millennials Lack Health Insurance

Why Millennials Lack Health Insurance?

As the largest generation in the workforce, Millennials are often characterized by their tech-savvy and entrepreneurial spirit. However, despite their reputation for being resourceful and adaptable, many Millennials lack health insurance coverage. According to a recent survey conducted by the Kaiser Family Foundation, more than one-third of uninsured adults in the United States are between the ages of 18 and 34. So, why are Millennials more likely to be uninsured than other age groups?

Lack of Employer-Sponsored Coverage

One reason why Millennials may be more likely to go without health insurance is that they are less likely to have access to employer-sponsored coverage. In the past, many employers offered comprehensive health insurance coverage as a way to compete for talent. However, in recent years, the cost of healthcare has risen dramatically, making it harder for employers to offer affordable coverage. As a result, many companies have shifted the burden of paying for healthcare onto their employees, and Millennials, who are often starting their careers in entry-level positions, may not be able to afford the premiums.

High Deductibles and Out-of-Pocket Costs

Even if Millennials can access employer-sponsored coverage, they may still choose to go without health insurance because of the high out-of-pocket costs associated with many plans. Manyinsurance plans now have high deductibles, which means that policyholders have to pay a certain amount out-of-pocket before their coverage kicks in. For Millennials who are already struggling to make ends meet, these high deductibles can be a significant barrier to accessing healthcare.

Lack of Understanding of Health Insurance

Another reason why Millennials may be more likely to go without health insurance is that many simply don't understand how insurance works. According to a survey conducted by the Transamerica Center for Health Studies, only 55% of Millennials feel confident that they understand how health insurance works. This lack of understanding can make it difficult for Millennials to navigate the complex healthcare system and choose a plan that meets their needs.

Financial Constraints

Finally, many Millennials may be going without health insurance simply because they can't afford it. According to a survey conducted by Bankrate, nearly half of all Millennials have less than $5,000 in savings, and 25% have no savings at all. Without a financial cushion to fall back on, Millennials may be forced to choose between paying for healthcare and other essential expenses, such as rent or groceries.

How Can Millennials Get Health Insurance?

Despite the barriers to obtaining health insurance, there are several options available to Millennials who want to get coverage. One option is to enroll in a plan through the Affordable Care Act (ACA) marketplace. Depending on their income, many Millennials may be eligible for subsidies that can help lower their monthly premiums. Another option is to look for a plan through their employer. While employer-sponsored coverage may be more expensive than it was in the past, it is still often more affordable than plans purchased on the individual market.

Tips for Choosing the Right Insurance Plan

When choosing an insurance plan, it's important to consider factors such as deductibles, premiums, and out-of-pocket costs. While it may be tempting to choose a plan with a low monthly premium, it's important to remember that these plans often have high deductibles, which can make accessing healthcare more expensive in the long run. It's also important to choose a plan that covers the services you need, such as prescription drugs or mental health services.

Conclusion

While many Millennials may be going without health insurance, there are several options available for obtaining coverage. By understanding the barriers to accessing healthcare and choosing the right insurance plan, Millennials can take steps to protect their health and financial wellbeing. Whether through the ACA marketplace or through their employer, there are options available for obtaining affordable and comprehensive health insurance coverage.