Young People Boycott Obamacare?

 Young People Should Say No to Obamacare | National Review Online.

 

 

Indeed, the law will require four out of five young Americans to pay more than they otherwise would for health coverage — yet another form of generational theft from young to old that ought to sour young people on government “help.”

What happens if the young invincibles don’t sign up?

If young people boycott Obamacare, the law of adverse selection kicks in. Too few young people in an insurance pool means fewer healthy people to subsidize the sicker people. Costs and premiums will rise more than expected, which will lead to fewer young people signing up and costs going up even more. In insurance jargon, it’s called a death spiral.

… and a young person’s decision process?

Grace-Marie Turner, head of the free-market Galen Institute, has looked at a typical young person’s decision tree on Obamacare. If someone is 27 years old, single, and making $34,000 a year, he will have to fork over more than $300 a month for a basic health-care package — that’s 50 percent more than he is likely paying now. Obamacare would send him a check for $20 a month through its subsidy program, but he or she will still wind up paying some $1,000 a year of after-tax income for basic health insurance. That’s a lot for someone with a decent job who is trying to save money for a house or to start a family.

Depending on the plan, the premium amount mentioned above seems high. That is about the maximum someone with that income could pay for a Silver plan.

The article also mischaracterizes the guaranteed issue portion of Obamacare:

And whether they are slackers, students, or software engineers, young people are smart enough to figure out that they can easily wait to sign up for coverage until after they get sick. Obamacare requires every insurance company to take anyone on as a customer regardless of any pre-existing conditions.

This is NOT, I repeat NOT true. OK, wanted to get your attention. Yes, Obamacare is guaranteed issue, but plans are only issued during open enrollment. The first years open enrollment is extended so it lasts from October 1st 2013 to March 31st 2014. In future years open enrollment will be from October 1st to sometime in December. Now this is very important:

YOU CANNOT GET COVERAGE OUTSIDE OF OPEN ENROLLMENT. COVERAGE DOES NOT START IMMEDIATELY.

Be careful out there.

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