This paper examines the effect of an individual's age and income on the premiums that she pays in the individual (non-employer sponsored) health insurance market. After controlling for medical conditions, insurance plan type, and demographic characteristics, it was found using both OLS and 2SLS that older and wealthier people pay higher premiums than younger and less wealthy individuals, which raises the possibility of adverse selection in the individual insurance market. These results may have important policy implications for regulation in the individual health insurance market.
"Effects of Age and Income on Individual Health Insurance Premiums,"
Undergraduate Economic Review:
1, Article 14.
Available at: http://digitalcommons.iwu.edu/uer/vol7/iss1/14