Those young whippersnappers! They’ve had it too good for too long.
Seriously though, what the heck? Many people my age are struggling to find a job straight out of college. More and more of the 22-26 age bracket is back at home than ever before. This is absurd.
Healthy young adults earning $35,000 per year should subsidize the health plans for early retirees just getting by on a fixed income of only $90,000 per year.
I believe this way because I too want to retire early in another decade. It would be harder for me to afford to quit if I had to pay my own risk-adjusted premiums for a health plan (say, $1,000 per month for a $10,000 deductible plan). I could more easily afford to buy a mountain home and an airplane to take me there if young people paid more so that I could get a $2,000 deductible plan for a measly $400 per month!
Steve, you make a good point! One problem with health insurance is we have to get sick in order to get a decent return on our investment. Although no one wants to get sick, I believe this creates a perverse incentive once we do need care.
You’re correct that people who don’t have car accidents subsidize those who do. But, then again, young people (especially males) have to pay higher premiums until they have demonstrated the ability to drive safely because history shows they have more accidents. If they have a history of tickets or accidents, they’re charged even more because these are highly correlated with higher claims history. I doubt if a 21-year old male could even get insurance on the Corvette I drive. I’m certainly glad I’m not in the same risk pool with 21-year old males. On the same token, neither do I want to be in the same risk pool sharing medical bills with a 60-year old hypertensive male who doesn’t exercise and eats to excess.
There is something to be said for requiring people to pay their expected costs. One benefit; it might encourage a change in behavior. Another benefit; in the event someone is unwilling to change their negative behavior, forcing them to cover the negative externalities caused by their behavior would negate the social costs rather than attempt to spread them around.
Didn’t you hear President Obama explain this. “They should contribute little bit more.” I bet you thought he was talking about the rich.
Those young whippersnappers! They’ve had it too good for too long.
Seriously though, what the heck? Many people my age are struggling to find a job straight out of college. More and more of the 22-26 age bracket is back at home than ever before. This is absurd.
I’ve never fully understood the logic the government uses to justify many of its policies.
The graph says it all.
Healthy young adults earning $35,000 per year should subsidize the health plans for early retirees just getting by on a fixed income of only $90,000 per year.
I believe this way because I too want to retire early in another decade. It would be harder for me to afford to quit if I had to pay my own risk-adjusted premiums for a health plan (say, $1,000 per month for a $10,000 deductible plan). I could more easily afford to buy a mountain home and an airplane to take me there if young people paid more so that I could get a $2,000 deductible plan for a measly $400 per month!
Those who dont have car accidents subsidize those who do. If young people dont like this, they can just get sick. That will show those old people.
Steve
Steve, you make a good point! One problem with health insurance is we have to get sick in order to get a decent return on our investment. Although no one wants to get sick, I believe this creates a perverse incentive once we do need care.
You’re correct that people who don’t have car accidents subsidize those who do. But, then again, young people (especially males) have to pay higher premiums until they have demonstrated the ability to drive safely because history shows they have more accidents. If they have a history of tickets or accidents, they’re charged even more because these are highly correlated with higher claims history. I doubt if a 21-year old male could even get insurance on the Corvette I drive. I’m certainly glad I’m not in the same risk pool with 21-year old males. On the same token, neither do I want to be in the same risk pool sharing medical bills with a 60-year old hypertensive male who doesn’t exercise and eats to excess.
There is something to be said for requiring people to pay their expected costs. One benefit; it might encourage a change in behavior. Another benefit; in the event someone is unwilling to change their negative behavior, forcing them to cover the negative externalities caused by their behavior would negate the social costs rather than attempt to spread them around.
So your telling me that the lowest income earners are supposed to support the highest income earners and their healthcare costs?
Welcom to the preseves thinking of Progrssives and their “social Justice”.