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Health reform shields young adults from emergency medical costs, study finds
Date:5/30/2013

A new federal law allowing young adults to remain on their parents' medical insurance until age 25 has shielded them, their families and hospitals from the full financial consequences of serious medical emergencies, according to a new RAND Corporation study.

Examining hospital emergency department use during the first year after the federal Affordable Care Act provision went into effect, researchers estimate that $147 million in nondiscretionary medical care was newly covered by private insurance. Without the new regulation, those costs would have been paid by young people and their families, or been written off by hospitals as uncompensated care.

The study, published in the May 30 edition of the New England Journal of Medicine, estimates that more than 22,000 nondiscretionary emergency room visits during 2011 involved young adults who were newly insured under the provision. The change increased health insurance rates by 3 percent among the young adults needing care in emergency departments nationwide during the period.

"The change allowing young people to remain on their parents' medical insurance is protecting young adults and their families from the significant financial risk posed by emergency medical care," said Andrew Mulcahy, the paper's lead author and a health policy researcher at RAND, a nonprofit research organization. "Hospitals are benefitting, too, because they are treating fewer uninsured young people for emergency ailments."

Under one of the first provisions of the Affordable Care Act to go into force, commercial health policies beginning in September 2010 were required to allow young adults up to age 25 to retain coverage under their parents' insurance.

Previous studies have shown that the provision significantly increased the number of insured young adults. One recent report estimates that the provision is associated with an additional 3.1 million insured young adults nationally.

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Contact: Warren Robak
media@rand.org
310-451-6913
RAND Corporation
Source:Eurekalert

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