Thursday, May 30, 2013

Obamacare: Voter Education for the Young

California youth whose employers do not pay their healthcare are in for a rude shock. Under Obamacare their monthly medical premiums are in line to double.

For Forbes, Avik Roy reports:
One of the most serious flaws with Obamacare is that its blizzard of regulations and mandates drives up the cost of insurance for people who buy it on their own. This problem will be especially acute when the law’s main provisions kick in on January 1, 2014, leading many to worry about health insurance “rate shock.”
. . .
If you’re a 25 year old male non-smoker, buying insurance for yourself, the cheapest plan on Obamacare’s exchanges is the catastrophic plan, which costs an average of $184 a month. (That’s the median monthly premium across California’s 19 insurance rating regions.) The next cheapest plan, the “bronze” comprehensive plan, costs $205 a month. But in 2013, on (NASDAQ:EHTH), the average cost of the five cheapest plans was only $92. In other words, for the average 25-year-old male non-smoking Californian, Obamacare will drive premiums up by between 100 and 123 percent
Here's the graph that accompanies the story:

It looks like young voters (who gave their votes to Obama in 2012 by a 60 to 36 margin) may be getting a $100/month reminder that someone has to pay for nice political promises.  In this case, it's them.

H/T Byron York


MAX Redline said...

I read last week that CA premiums are expected to rise by as much as 146%. At what point does the credit become irrelevant? In many cases, it appears to make more sense to not buy, and pay the penalty. Particularly for the young and healthy.

T. D. said...

Yes, Max, I think you're right that many young people will choose not to buy health insurance. It also looks like the "help" the government is promising to those who make less than the stated minimum yearly income may cost too much for the government to pay most or all of their fee. Especially since the Democrats did this all without Republican support and now the Republicans control the House. Double Oops!