For many older Americans who lost jobs during the recession, the quest for health care has been one obstacle after another. They’re unwanted by employers, rejected by insurers, struggling to cover rising medical costs and praying to reach Medicare age before a health crisis.
These luckless people, most in their 50s and 60s, have emerged this month as early winners under the nation’s new health insurance system. Along with their peers who are self-employed or whose jobs do not offer insurance, they have been signing up for coverage in large numbers, submitting new-patient forms at doctor’s offices and filling prescriptions at pharmacies.
“I just cried I was so relieved,” said Maureen Grey, a 58-year-old Chicagoan who finally saw a doctor this month after a fall in September left her in constant pain. Laid off twice from full-time jobs in the past five years, she saw her income drop from $60,000 to $17,800 a year. Now doing temp work, she was uninsured for 18 months before she chose a marketplace plan for $68 a month.
Young invincibles need to sign up quickly or the risk pool will be way to lopsided.
The Affordable Care Act is intended to benefit those with lower incomes, who are more likely to be uninsured than those with higher incomes. But at this time, lower-income Americans are less familiar with the law than those with higher incomes.
They are just not interested. It’s doubtful outreach and marketing will change that. We’ll find out.
Colorado, New Jersey, New York, Ohio, Rhode Island
For the most part, these states will see decreases because they have already adopted some version of health care regulations that include mandates similar to Obamacare. One blue state, California, has pushed heavy mandates and yet will see its rates rise from 3.4% to 23.6%, with older Californians seeing half the hike that younger Californians will suffer.
Color me unconvinced on the Colorado reporting. The factual data I do have shows substantial increaes but that’s only on a few cases so there is no conclusion that can be drawn. I will run some young invincibles this evening and add to this post.
The number of visitors to the federal government’s HealthCare.gov Web site plummeted 88 percent between Oct. 1 and Oct. 13, according to a new analysis of America’s online use, while less than half of 1 percent of the site’s visitors successfully enrolled for health insurance the first week.
Lookng at this graph, of the 9.7 million that visited the site, 271,00o successfully logged in. You can’t even look at plans and pricing at this stage. Will young invincibles, who are so important to Obamacare, tolerage a non-functional website?
Amateur hour and that’s being kind. Heck, prediction Chaos is being kind.
Additional information on avoiding Obamacare is located in the right hand column of this blog (Bridge to Obamacare). Unfortunately, this tactic doesn’t work will in all states, including Colorado, where short term is limited to 6 months.
The article mentions eligibility for catastrophic plans but does not mention they you can’t receive a subsidy if your purchase one.
My suggestion if your purchase a high deductible Obamacare option, be it Catastrophic or a Bronze plan that you consider a supplemental accident plan to go with it. They are typically in the range of $17 – $35 per month depending on plan and benefits.
This young invincible subsidy chart for a Colorado 26 year old was created using the updated subsidy calculator on the Colorado Marketplace, Connect for Health Colorado. Boulder is fairly typical for the state and Edwards/the Vail Valley is indicative of the resort areas.
In general, young invincibles in Colorado that have a modified adjusted gross income greater than $27,500 or $30,000 will receive no subsidy. Edwards is a dramatic exception which is due to the cost of health coverage being substantially more expensive in the resort areas.
But don’t worry, everyone will be covered, right? As the College Art Association notes in a “Brief message” to its members on its website, “Here’s the good news: PPACA includes comprehensive reform that is designed to provide affordable health coverage for all individuals. The average premium for individuals who purchase coverage directly today (i.e., they do not receive coverage through their employer) is expected to decline significantly.”
But the membership of these organizations should worry. Unless they are older or suffer from some preexisting condition that made coverage hard to obtain, freelance artists, designers, and musicians forced to enter the state-run exchanges are far more likely to see their rates go up—or to face the individual mandate penalties. This will be especially true, as alert observers of Obamacare implementation have noted, for those under the age of 30.
The youner applicants, better known as the “young invincibles”, can certainly look forward to increased rates, although coverage will be better. Most likely they will find the tradeoff unsatisfactory but I’m just speculating. Soon they will get to vote with their wallets.
The No. 1 question about President Barack Obama’s health care law is whether consumers will be able to afford the coverage. Now the answer is coming in.
The biggest study yet of premiumsposted by states finds that the sticker price for a 21-year-old buying a mid-range policy will average about $270 a month. That’s before government tax credits that act like a discount for most people, bringing down the cost based on their income.
List-price premiums for a 40-year-old buying a mid-range plan will average close to $330, the study by Avalere Health found. For a 60-year-old, they were nearly double that at $615 a month.
Hmmm, doesn’t look good for the young invincibles. That said, most YI’s aren’t interested in a “mid range” plan. They will get the lowest cost bronze plan available.
The new rates reported seem closer to what my clients are seeing. Those with Humana and Rocky Mountain are getting a peek at the new Obamacare premiums and an 80% increase is par for the course and higher is certainly possible. I expect other carriers will be no different. We will know soon enough.
Conover goes into interesting detail to outline why ObamaCare is a bad deal for young people. And, just as importantly he points us to another article that points to another significant cost over the years that usually goes unmentioned – opportunity cost. What is the cost of the opportunity the money they spend on health care in terms of what they would have done with the money if they could use it for their choice?
I’ve seen premium increases for my clients from one company and if they are representative of what the other companies will do, the young invincibles are gonna “run like hell” the other direction.
I recently received some Obamacare pricing from a single carrier last week. It is NOT a pretty picture. A “young invincible” couple client with a $1500 deductible plan in the Denver/Metro area. Rates increasing from $290 to around $500/mo for a Bronze plan and over $700/mo for a Platinum plan.
Are they going to pay that much? Color me very skeptical.
Prediction: Chaos with the needle moving towards TOTAL chaos.