Study: ObamaCare’s bum deal for young people, quantified

posted at 4:41 pm on August 16, 2013 by Erika Johnsen

As everybody who hasn’t been determinedly keeping their heads buried in the sand is already well aware, the Patient “Protection” and “Affordable” Care Act was designed to rope young people into paying a disproportionate amount for their health insurance premiums in order to help pay for the inherently riskier insurance pools that it creates.

ObamaCare offers the choice, however, of paying a penalty rather than purchasing insurance, and the trouble for the administration is that the penalty is looking like it might be a much more attractive option for some of the very same young people they need to purchase needlessly expensive insurance plans in droves.

A new study offers some numbers on exactly what that choice might look like, via IBD:

Nearly 4 million young people will be much better off financially if they refuse to buy an ObamaCare insurance policy and instead pay the fine for going without coverage next year, according to a study released Thursday by the National Center for Public Policy Research.

The study found that 3.7 million childless single people age 18-34 would save at least $500 if they didn’t buy insurance and instead paid the tax penalty next year. Of those, more than 3 million would save at least $1,000.

That’s despite the heavy taxpayer subsidies many of these young people would be eligible to get. The ObamaCare insurance exchanges provide tax credits to offset the cost of insurance to those with incomes up to 400% of the poverty rate. …

“This age group must buy insurance in the exchanges to cross-subsidize people who are older and sicker,” explained David Hogberg, a policy analyst at the conservative National Center. “Without them, the exchange will enter a ‘death spiral’ where only the older and sicker participate and the price of premiums increases precipitously.”

The penalty is designed to increase over time (and who knows if the Obama administration won’t pull another completely unilateral and arbitrary move if things start going badly and decide to jack up the penalty once again), and maybe plenty of young people would rather live with health insurance than without it, even with the decreasingly appealing prices.

A study in June from the Kaiser Foundation, however, suggested that at least a quarter of young people already sound willing to hedge their bets, and the lingering state of economic stagnation and youth unemployment probably isn’t going to do much to help push them in the Obama administration’s desired direction. They are definitely sweating this one, as they should be.


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Reality struck the dummies.

obama ruined the land and burdened you dummies, forever.

Schadenfreude on August 16, 2013 at 4:48 PM

You misspelled “males”. PlaceboCare is for the Flukes of the ObamiNation, and indeed it’s robbing the elderly on Medicare to further cement their votes for Rats.

Steve Eggleston on August 16, 2013 at 4:49 PM

this is racist/progressive counter-point.

rob verdi on August 16, 2013 at 4:50 PM

What is the tax and what is the minimum plan cost?

$500 sounds too low of a “savings” by paying a tax penalty.

And when a penalty is your best choice concerning insurance and healthcare – Houston, we have a problem.

Odie1941 on August 16, 2013 at 4:51 PM

This from a leftist source.
Dire.

Youth, you have NO free future…nor present.

Schadenfreude on August 16, 2013 at 4:52 PM

They will still love him, because they wont associate their suffering with him.

ChunkyLover on August 16, 2013 at 4:52 PM

And here I thought the youngins’ would just be flocking to Obamacare…they voted for him, after all.

coldwarrior on August 16, 2013 at 4:52 PM

The well to do congressional aids don’t care, fools.

They are exempt form the travesty.

Your tyrants are in charge of you.

Schadenfreude on August 16, 2013 at 4:53 PM

Get some beer or a little pot, take a weekend road trip, have something to eat, pay the rent, get a car or motorcycle, pay for college, take that hot girl out on a date …

Nah. I want to pay ObamaCare a bunch of money for care I’ll never need.

/sarcasm

Paul-Cincy on August 16, 2013 at 4:54 PM

Well, well. So you voted for Obama and now you have no job, AND you get to pay a fine! Woo Hoo!!!

Obama: Why Stupid People Shouldn’t Vote

Key West Reader on August 16, 2013 at 4:54 PM

And they STILL will have no health insurance.
DOH.

pambi on August 16, 2013 at 4:54 PM

What is the tax and what is the minimum plan cost?

$500 sounds too low of a “savings” by paying a tax penalty.

And when a penalty is your best choice concerning insurance and healthcare – Houston, we have a problem.

Odie1941 on August 16, 2013 at 4:51 PM

Given the 2014 penal…er…tax is $94, and there is a sliding scale on the subsidies, a $500/$1000 savings is easily in the ballpark.

Steve Eggleston on August 16, 2013 at 4:55 PM

Yet the administration did not disclose, say, the lapses Gellman reported. In fact, the NSA retroactively placed an on-the-record interview with its director of compliance off the record, according to Gellman. It did this after Obama’s speech extolling the importance of and promising transparency. In a sense, we got his wished-for transparency. We can see right through him now.

–The New Republic

Schadenfreude on August 16, 2013 at 4:55 PM

Oh, who cares. Some rodeo clown wore an Obama mask!

Chuck Schick on August 16, 2013 at 4:55 PM

Nearly 4 million young people will be much better off financially if they refuse to buy an ObamaCare insurance policy and instead pay the fine

CJ John Roberts said it wasn’t a fine … it was a *cough* tax *cough*.

Paul-Cincy on August 16, 2013 at 4:57 PM

Sh*t sandwich – open up and say “ahhhh-bama!”

somewhatconcerned on August 16, 2013 at 4:58 PM

Given the 2014 penal…er…tax is $94, and there is a sliding scale on the subsidies, a $500/$1000 savings is easily in the ballpark.

Steve Eggleston on August 16, 2013 at 4:55 PM

I admit this is an issue that is so ridiculous – I haven’t really paid attention to the 27,000 pages or whatever. (or is it 2,700?) And the goalposts, “estimates” and studies are all over the map.

But how in the hell can a system be supported by a) penalizing a service that – at $94 bucks or so , does nothing to offset the actual cost, of lets say – an ER visit to get a boil removed. (roughly $1,200, please don’t ask where) And I have a low deductible , high premium insurance plan.

If exchanges are needed to get money flowing in, but the tax/penalty is $94 – and a more affordable choice, what is God’s name will keep this crap afloat. Pun intended.

I understand it’s a rigged gimmick to have middle class and rich folks to “pay for the whole thing” – or a single payer junta, but in between the months and years of “making changes” – I see a multi-trillion dollar loss, including Dr’s, nurse, etc just getting out of the business.

Help me Steve, you are my only hope.

Odie1941 on August 16, 2013 at 5:02 PM

I hope it falls.

Bmore on August 16, 2013 at 5:02 PM

The GOP and interested conservative groups should encourage younger Americans to not sign up.

Charlemagne on August 16, 2013 at 5:04 PM

When the yoots see the deductables and copays on these subsidized policies that penalty tax will look like manna from heaven.If they have a job most of what’s left of the paycheck will go to health insurance carriers.No mon,no fun.

docflash on August 16, 2013 at 5:09 PM

They voted for King Barky the Incompetent they can deal with his genius economic policies….plus our healthcare system will be destroyed by the time they need it.

jukin3 on August 16, 2013 at 5:09 PM

It is not supposed to ever become functional. Single Payer is the Goal.

Bmore on August 16, 2013 at 5:09 PM

“Huh? BUY insurance? Fines? Why are those racist TEA-BAGGERS making this sh*t up? Obama is giving us FREE healthcare, because he’s awesome and stuff.” – an obama voter

Pork-Chop on August 16, 2013 at 5:09 PM

As someone in that young age group, my question to anyone wanting to be an elected official:
This law seems to already be changing on a whim by a handful of people. That undermines the structure and faith of government “by the people” and “for the people”.
How do you plan to return the law-making decisions to Congress instead of the President and un-elected officials?

AeroSpear on August 16, 2013 at 5:19 PM

Oh, who cares. Some rodeo clown wore an Obama mask!

Chuck Schick on August 16, 2013 at 4:55 PM

Indeed. And on the Charter.com home page, there was this “news” headline that should keep the libs interested:

Moving On
Michelle makes a big confession

So, here I am thinking, what, is she is dumping Barack for a man? Or she is going to confess that her husband is a deceitful, treacherous, dangerous marxist? You know, the truth for once.

So against my better judgment I clicked on it, and alas, this is what came up as her “big” confession she was “moving on” from:

Now Playing: Michelle Obama Talks About Ditching Her Bangs | NR
The First Lady explains why she gave up her trendy ‘do. Hear what she has to say.

And no, I didn’t watch it. It was bad enough seeing her ugly mug in the thumbnail.

Sterling Holobyte on August 16, 2013 at 5:23 PM

According to SCOTUS, one of the factors making the penalty a “tax” is the fact that “[t]he payment is not so high that there is really no choice but to buy health insurance”. Thus if they raise the penalty too high so that you have to buy insurance, that might make the whole thing unconstitutional… again.

Ash on August 16, 2013 at 5:26 PM

I admit this is an issue that is so ridiculous – I haven’t really paid attention to the 27,000 pages or whatever. (or is it 2,700?) And the goalposts, “estimates” and studies are all over the map.

But how in the hell can a system be supported by a) penalizing a service that – at $94 bucks or so , does nothing to offset the actual cost, of lets say – an ER visit to get a boil removed. (roughly $1,200, please don’t ask where) And I have a low deductible , high premium insurance plan.

If exchanges are needed to get money flowing in, but the tax/penalty is $94 – and a more affordable choice, what is God’s name will keep this crap afloat. Pun intended.

I understand it’s a rigged gimmick to have middle class and rich folks to “pay for the whole thing” – or a single payer junta, but in between the months and years of “making changes” – I see a multi-trillion dollar loss, including Dr’s, nurse, etc just getting out of the business.

Help me Steve, you are my only hope.

Odie1941 on August 16, 2013 at 5:02 PM

Thought it was 47,000 pages myself.

As for the penal…er…tax, that $94 penalty is a one-year-only deal. By 2016, it will be the greater of $695 or 2.5% of one’s income, with the $695 ratcheted up by the rate of inflation.

It is a rigged game, and the departure of the providers are a feature, not a bug.

Steve Eggleston on August 16, 2013 at 5:31 PM

Sterling Holobyte on August 16, 2013 at 5:23 PM

You do realize that Charter owns NBC, and thus NBC “News” and PMSDNC.

Steve Eggleston on August 16, 2013 at 5:32 PM

The $500 ‘savings’ perhaps assumes that the purchaser of healthcare insurance is able to use the preventative care that they promised. Me thinks that most of those suckers will be poorly mistaken. They will not find docs who are able to provide the services at the reimbursement fees allowed.

It’s going to be a giant version of Medicade.

Deafdog on August 16, 2013 at 5:32 PM

Betcha the IRS will audit the income tax returns of everyone who elects to pay the tax instead of buy Obamassurance.

Labamigo on August 16, 2013 at 5:33 PM

Now they’ve really got a reason to faint at Barky’s photo-ops.

viking01 on August 16, 2013 at 5:35 PM

Epic letter to obama

Schadenfreude on August 16, 2013 at 5:46 PM

Epic letter to obama

Schadenfreude on August 16, 2013 at 5:46 PM

Awesomely awesome with a side of awesomeness

txmomof6 on August 16, 2013 at 6:00 PM

Said back in 2009 that ObamaCare was designed to pit young vs. old, rich vs. poor etc. Nothing has changed except low info people are finally starting to see it. Too little, too late.

txmomof6 on August 16, 2013 at 6:04 PM

It is intended to collapse.

Philly on August 16, 2013 at 6:06 PM

You jokers elected this acolyte of Satan. Kind of ironic that you’ll lose your health care or pay 3 times as much.

Of course, the jokes on us old folks. When all the doctors quit, retire or go into “boutique” practices where it’s cash only the old will suffer a lot more than you brainwashed chumps… at least for a while but eventually the collapse will affect everyone; including you.

acyl72 on August 16, 2013 at 6:12 PM

Don’t younger folks need jobs to pay for either insurance OR the penalty?

Yet this admin continues to severely supress the job market, either intentionally or out of sheer stupidity and ignorance.

On the bright side, didn’t Obama slow groove with Jimmy Fallon? That’s gotta be worth 4 more years at least!

Oxymoron on August 16, 2013 at 6:23 PM

“Rodeo clown!!”

“SQUIRREL!!”

Khun Joe on August 16, 2013 at 7:04 PM

“We have to pass it so that you can see what’s in it!”

GarandFan on August 16, 2013 at 8:03 PM

…whose that guy in the picture wiping his mask…instead of his ask?

KOOLAID2 on August 16, 2013 at 8:41 PM

When the yoots see the deductables and copays on these subsidized policies that penalty tax will look like manna from heaven.If they have a job most of what’s left of the paycheck will go to health insurance carriers.No mon,no fun.

docflash on August 16, 2013 at 5:09 PM

What’s funny, is that even if the penalty is a favorable option… it’s still a penalty/expense they are *not* paying today. They’re going to *like* this?

Midas on August 16, 2013 at 9:50 PM

With the complex tax structure I suspect one benificiary of this intrusive absurdity disguised as heathcare would be the tax prep people. How much have they donated to theleft’s campaigns. Curious people, conspiracy-minded and sane alike, want to know?

Don L on August 17, 2013 at 8:00 AM

When the yoots see the deductables and copays on these subsidized policies that penalty tax will look like manna from heaven.If they have a job most of what’s left of the paycheck will go to health insurance carriers.No mon,no fun.

docflash on August 16, 2013 at 5:09 PM

Not to worry, Hillary will campaign on getting rid of the yoot penalties–it’s all part of the plan….

Don L on August 17, 2013 at 8:02 AM

Impeach Obama!

Sherman1864 on August 17, 2013 at 9:51 AM

As a gen-X libertarian/conservative type, I have to laugh. I’ve made it to upper/middle class status, but I have no hope of making any real political difference, and I never seem to qualify for any government program, benefit, entitlement, or tax savings outside of the mortgage deduction.

I paid my own way through college and work my *ss off 5-days a week in corporate America. Yep, I’m a wage slave so that the not so poor (richest class in the world) “elderly” can collect benefits I will likely never see and so that the “poor not elderly” can collect from an infinite number of welfare programs.

Not much I can do but laugh…

1. The elderly are going to get death panel’d in the liberal hail-marry hopes to save FDR’s SS program.

2. The so-called poor (richest poor people on the planet) are getting further roped into a government cradle-to-grave soft tyranny of dependency.

3. The young are denied any real employment opportunities, while being made responsible for funding what is left of the entitlement state.

4. Meanwhile, the 1% that the left hates are being further enriched by insider money, contracts, and rules that limit competition and ensure the top 1% and bottom 47% will be for ever locked into their place.

I say ha, ha, ha to all of it. You poor miserable bast@rds. You’ve made your bed, now lie in it. It’s a shame the useful idiots don’t realize what they’ve done to themselves.

strickler on August 17, 2013 at 10:15 AM

yeah, but you know, the big moral issue for the dumb kids is letting gheys marry, so…small price to pay I guess.

suckers.

joeindc44 on August 17, 2013 at 9:18 PM