[Related to the Chapter Opener on page 146] An article
on the usnews.com site about the Patient Protection and
Afford Care Act (ACA) reported that “the participation
(enrollment) of the prized ‘young invincibles’ . . . has been
elusive.” (“Young invincibles” refers to 18- to 34-yearolds who don’t buy health insurance because they expect
to remain healthy.) The article noted that the number of
people with preexisting conditions enrolled in the health
insurance marketplaces has risen relative to the number
of young invincibles and asserted that this “imbalance
has caused premiums to rise, which can also cause some
healthier beneficiaries to avoid plans.”
a. Why is the participation of young invincibles important to the success of the ACA health insurance
marketplaces?
b. Why would an increase in the ratio of people with
preexisting conditions to young invincibles result in
increases in premiums? What economic problem that
occurs in the market for health care does this increase
illustrate?
c. If the ratio of people with preexisting conditions to
young invincibles continues to rise, what will be the
consequences for the health insurance marketplaces?
Source: Kimberly Leonard, “‘Young Invincibles’ Remain Elusive for
Obamacare,” usnews.com, September 7, 2016.