DOES OBAMACARE STICK IT TO THE YOUNG

3/18/13

NEVER INTERRUPT YOUR ENEMY WHEN HE’S MAKING A MISTAKE

“Lower cost for young adults” OBAMA fact sheet. “Now, if you don’t have health insurance, Obama care will offer you quality affordable choices—OBAMA.

This is a shell game being run on the young by liberal con artists.
Two promises to the young—parent’s plans will cover you under the age of 27, and Obamacare will lower the cost of individual health care insurance for young people.
2012 according to the BLS figures—young people are more dependent on their parents than any generation in American history. However Sebelius crows about the over 3 million adult “children” who are now covered under a parents policy, thanks to Obamacare. Obamacare doesn’t even become full blown until January 2014. The hundreds of pages of the Obamacare starts on October 1, 2013. Individuals who are not receiving health insurance form their jobs will be strong-armed into purchasing individual insurance form state health insurance exchanges. (23 states have opted out of the plan and the fed takes over in these states).
Avik Roy in Forbes insuring the average 18 year old for instance cost one-sixth the cost of insuring a typical 64 year old. This is called “An EXPERIENCE Rating”. Many states however restrict this “age band” to 5:1.
Obamacare however jettisoned the insurance industry’s time-tested “experience rating” system in favor of a utopian scheme “community rating” provision. This requires health insurers to level out premiums so young people pay more and older people pay less. Obamacare is a sop to AARP, requires that insurers only charge three times as much to their costliest beneficiaries what they charge to their least-costly ones—an age band of 3:1, and the young people will pay through the nose. Insurance rate hike of 45% for the 18-24 year age bracket, which is bad enough, while Roy puts the increase at a horrifying 75%.
Oliver Wyman the 3:1 age band will cause more than 500,000 to drop coverage and join the ranks of the uninsured. The federal penalty for not buying health insurance ($95 in 2014; $325 in 2015; $695 in 2016). They’ll wait until something goes wrong then sign up—remember no pre-existing conditions.
So when the young eschew insurance, older people will face far higher premiums. New “Essential Health Benefits” the young are at the mercy of obamacare, is in the array of benefits that health insurance plans must cover. The new regs dictated by Sebelius and Co., include prescription drugs maternity care and other services which used to be costly upgrades. Re the Huffington Post, bigger and better benefits mean much higher premiums. HuffPo feebly tries to spin it; seeks to guarantee coverage at lower prices to people as they get older and sicker, but in exchange it is possible they will pay more into the system when they are young and healthy and need less medical cared.
Obamacare will more than double the cost of health insurance for many young people and then the law will turn around and spend taxpayer dollars to subsidize the cost of this newly costly insurance.
Sebelius promises the higher rates “will be largely mitigated for most people by the availability of premium tax credits. Tax credit will be given on a sliding scale to people with incomes up to four times the poverty level, depending on the state. Jonathan Gruber bragged that Obamacare would save young adults 13% and older Americans 31% on premiums. PricewaterhouseCoopers report that individual premiums would increase by 47%. Gruber had to walk back his promises.
According to the Census Bureau data 55% of all uninsured Americans are under the age of 35. Robert Hutley of eHealthInsurance admitted to the Huffington Post that pricing will go up for all populations and some more so than others.

Sources—limbaugh, bls, forbes, whitehouse.gov, huffington, gruber, hutley.

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