Rick Ungar says the Obamacare rate shock is false. His source is the Urban Health Institute. Their conclusion is:
“Overall, we find that loosening the rate bands from 3:1?to 5:1 would have very little impact on out-of-pocket?rates paid by the youngest nongroup purchasers, once subsidies are taken into account. This is not only the case for all likely purchasers, but also for two populations of particular concern: the 10 million 21-27 year olds who are currently uninsured and the 3 million who currently have nongroup coverage.”
Rick Unger continues…
By suggesting that the insurance company claims are merely ‘unfounded’, The Urban Institute is being quite kind as I would suggest a far harsher explanation for their scare tactics.
What the insurance industry is not telling you—as revealed by The Urban Institute study—is that the overwhelming majority of young people who would be charged a higher premium to make up for the lower premiums to be paid by their elders will either be covered by the premium subsidies offered via the insurance exchanges or eligible for Medicaid under the expansion of the program extending health coverage to those earning 133 percent above the federal poverty line.
Rich may have a point. My concern is two fold:
- Does the Obamacare financing planning account for the subsidies that will be required?
- Will young people actually sign up instead of pay the penalty? I speak with young people everyday and most have a very clear crystal ball and can see the future and no need for health care quite well. Those that acknowedge the need, many want a catastrophic plan so they don’t burden their parents with many thousands of dollars in medical bills.
There’s is also this claim which I believe the Medicaid claim is factually inaccurate:
92 percent of people ages 21 to 27 projected to buy an individual plan in an exchange in 2017 are expected to have incomes less than 300 percent of the poverty line, so they would be eligible either for Medicaid (if their state expands it) or for substantial subsidies to help pay premiums in the exchange.
Perhaps overtime, Medicaid is expanding to cover everyone below 300 percent of the poverty line? Also, the higher the income, the less the subsidy. I can’t find any reference for the Medicaid claim. I’ll do further investigation and report back here on leave a link to another post.