What is the maximum permissible age rating variation ratio allowed under the Affordable Care Act?

The maximum permissible age rating variation ratio allowed under the Affordable Care Act is three to one. This means that insurance companies can charge older individuals no more than three times what they charge younger individuals for the same policy. This provision is designed to make health insurance more affordable for older individuals while ensuring that premium pricing remains fair and equitable across age groups.

The rationale behind this regulation is to provide access to health insurance for a broader range of ages without prohibitive costs for older individuals, who may face higher health care needs. By capping the age rating variation, the ACA aims to stabilize the insurance market and encourage participation across different age demographics.

As a context, while other ratios might seem like viable options, they do not align with the guidelines established by the ACA, which are specifically designed to maintain affordability and accessibility in the health insurance marketplace for all age groups.