NYT Missed the News: Exchanges Need Healthy People, Young Doesn't Matter

December 20, 2013

The NYT apparently hasn’t gotten the word. Kaiser Family Foundation did an analysis showing that the age composition of the insurance pool in the exchanges will have little impact on costs. The issue is the health mix. If the exchanges fail to attract older healthy people it will cause as much of a problem as if it fails to attract young healthy people. (On a per person basis the loss is larger, since healthy old people pay three times as much for insurance.)

Unfortunately the NYT has not gotten the word. It again told readers that:

“That requirement, often called an individual mandate, is needed to guarantee that insurers attract young healthy people to help offset the costs of covering older Americans who require more medical care, insurers say.”

The relevant adjective is “healthy,” young really doesn’t matter.

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