AARP: Nongroup Health Insurance Unaffordable For Nearly Half Of Adults Ages 50-64

A new analysis from AARP's Public Policy Institute finds that nearly half of older adults purchasing health insurance through the nongroup health insurance market faced unaffordable health coverage in 2019, compared to only 30% of younger adults.

As a result, a growing share of older adults remained uninsured: 9% of all 50-64 year-olds, more than half of all older adults who don't have access to job-based or public health coverage. While the Affordable Care Act (ACA) has significantly narrowed racial and ethnic coverage disparities in health coverage among 50-64 year-olds, about 20% of Hispanic/Latino and Native Americans in that age range are uninsured - almost triple the rate for non-Hispanic whites.

AARP's analysis found that in 2019, a 64-year-old earning slightly above the threshold to be eligible for premium subsidies under the ACA faced an average premium that was nearly 30% of their income. Two recent policy changes could help older adults who are currently uninsured purchase affordable coverage. A provision of the American Rescue Plan Act caps the amount an individual pays for health insurance in the marketplace at 8.5% of income for two years. This provision goes into effect April 1, overlapping with a special enrollment period that allows people to purchase health insurance through the nongroup market until August 15.

"While the Affordable Care Act has greatly reduced the number of older adults who are uninsured, coverage has remained unaffordable for far too many people aged 50-64, particularly those who are Hispanic/Latino and Native Americans," said Nancy LeaMond, AARP Executive Vice President and Chief Advocacy & Engagement Officer. "We want to make sure that the millions of currently uninsured older adults know that new subsidies are available to them beginning April 1."