How Much Does ObamaCare Rip Off Young Adults?
Someone, for example, earning $25K annually in Arizona will pay $2,424 in total monthly premiums for ObamaCare (10% of their annual income) and still be stuck with a $4,000 deductible and a $5,200 cap on their out of pocket costs. The same person in Illinois will pay $3,576 in annual premiums, and in low cost Texas $2,460.
What about the same 30 year old who now earns $30,000 annually — the average salary for a pre-school teacher according to census data? In Arizona, their annual cost for carrying the ObamaCare plan runs $2,772 and their deductible is $5,000. In Illinois, the same person will spend $4,092 for the same health plan, and also have a $5,000 deductible before their full health coverage kicks in.
Scott Gottlieb in Forbes and at AEI.
“The health plans intentionally keep prices higher for young adults to subsidize older beneficiaries”
Yeah…As a member of the target demographic, I can definitively say I’m not about that life.
At least costs will go down!
You just have to wait your whole life!
“Obamacare is still struggling to sign up young people. In order to offset the high cost of the older, and probably less healthy people who are joining Obamacare plans, the White House must coerce a sufficient number of thirty-somethings to also join.”
Coerce is a good word for it.
Bribe*
Haha that’s more like it
“Obamacare is asking young adults to effectively subsidize the healthcare costs of older Americans.”
Their plan of action is horrible though
It has been since the beginning!
Why doesn’t someone in the actuarial business just publish a chart of the screwjob visited on the young, single, healthy childfree man and woman?
It’s just too much useless information to write,
“Someone, for example, earning $25K annually in Arizona will pay $2,424 in total monthly premiums for ObamaCare (10% of their annual income) and still be stuck with a $4,000 deductible and a $5,200 cap on their out of pocket costs.”
What I want is a chart showing what the “actuarially fair value” of a $2424 premium is for a 30-year old childfree man, a 30-year old childfree woman, and a couple of 30 with two kids.
Maybe the NCPA could do that!
“The health plans intentionally keep prices higher for young adults to subsidize older beneficiaries.”
At least it will get cheaper
Yeah, it’ll just take your whole life
Our whole country will be broke by the time this is over
when is the question
ObamaCare is based on the idea that young people should pay more so older, sicker people get a break. Of course, since older people usually have more money than young people just starting out, this really doesn’t make much sense.
The important thing is that we older and sicker folks keep public education bad as it is so as not to let the young and healthy gain a clue about the screwjob being visited upon them.
If we ever let them learn economics, math or actuarial science, we older, richer folks would be in a bind. Besides, if they got a real education they might stop being religious and refuse to fight in our foreign wars of aggression.
John Goodman is a proponent of high deductible plans and an advocate. It seems odd that now this blog is presenting high deductible plans as not efficient?
You cannot discuss the ACA without factoring in the enormous difference that employer contributions make to health care.
Heck, a 25 year old in the Federal employee’s plan pays at least $2000 a year of their own money for health insurance, but they get a plan with much lower deductibles because the employer pays another $6-$8000 a year.
That federal employee at age 25 has a lot of older and sicker colleagues, which drives up their premium.
Big deal, their employer pays the difference.
Any health plan without employer money is going to be expensive, Republican or Democrat.