Many students are still insured under their parents or choose to use the insurance provided by the university. When at last, graduation approaches there may be different insurance policies in place.
BYU economics professor, Mark Showalter, was appointed to the White House's Council of Economic Advisors to figure how to make health insurance more affordable for the millions of Americans who are not insured through their employer.
Showalter co-authored the study with Amanda Kowalski of the National Bureau of Economic Research and William Congdon of The Brookings Institution. Their report was published Nov. 19 in the academic journal Forum for Health Economics & Policy.
The new research shows when state governments limit price adjustments based on factors such as age, health or risky behaviors such as smoking, the cost of health insurance premium for a typical family increases about $100 per month.
There are seven states that have rules known as community ratings that prevent insurers from adjusting prices based on factors such as these.
Showalter said these policies in place apply for those that have average costs, but those who have better health see higher prices.
"We found that those kinds of policies tend to lead to higher prices," Showalter said. "It counters the idea of making insurance affordable."
The research also highlights how much insurance policies vary from state to state. One state's polices can result in premiums that are twice as much as another close by.
Roger Feldman, a University of Minnesota health economist is studying how an interstate market might reduce the number of uninsured American's.
"This study enables us to predict the effect of allowing consumers to shop for insurance across state lines," Feldman said in a press release. "Those kinds of simulations would not be possible without this study."
The research also found, when state governments make insurers accept all doctors, hospital or pharmacies premiums rise by 10 percent.
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Copyright Brigham Young University 21 Nov 2008
