Wednesday, July 13, 2016

Young Adults Spell Trouble for Hospital Revenues

It’s official: the country has entered the Age of the Millennial. According to Pew Research census date, there are now 75.4 million millennials in America compared to just 74.9 million Baby Boomers, making the former the largest living generation in the country.

There’s one hitch, though: millennials are also one of the least financially savvy generations.

A Drop in Health Coverage

Nowhere is this more apparent than the recent drop in health coverage among young adults. Since the Affordable Care Act was passed, the number of 19-25 year olds who are uninsured has increased by 50%, according to the Centers For Medicare & Medicaid Services.

What’s the cause of this huge spike? It’s a combination of factors, ranging from lack of information to bureaucratic inefficiencies. For instance, a 19-year-old who recently aged out of Medicaid may get a notice of non-insurance, but receive no information about her coverage options.

Trouble for Hospitals

If the largest living generation is uninsured, it could spell big trouble for hospitals, who often have to write off medical bills simply because millennials have no coverage to pay for it.

Fortunately, there are specialized companies that help medical facilities avoid such scenarios by informing young adults of the insurance options they have and assisting them in enrollment.

Insuring young individuals results in a win-win scenario: they get the health coverage they need and hospitals maintain a healthy bottom line, allowing them to continue giving health services to the public.

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