Moody's said it suspects that many of the people in the 18-to-24-year-old demographic who've signed up for coverage may be among the least healthy in their cohort or they may be covering specific healthcare expenses in the coming year, such as young couples needing maternity benefits. If suspicions prove to be correct, the cohort will not provide the financial support needed to cover the higher medical costs of older enrollees, Moody's said.
In addition, Moody's said a considerable percentage of the 18-34-year-old demographic could potentially cancel its policies after a few months. "The probability of cancellation may be higher for those who purchased a policy as a result of a marketing push rather than a perceived need," Moody's said.
"Although these individuals may have been convinced of the value of a comprehensive health insurance package, the monthly premium requirement, along with a lack of need to obtain medical care, may cause them to re-evaluate."