Skip to comments.'Young Invincibles' Still Won't Get Subsidies On ObamaCare Exchange ("headed for death spiral")
Posted on 09/26/2013 11:28:42 AM PDT by 11th_VA
Today the Department of Health and Human Services released premium data on the 36 federal exchanges. The data largely confirms what was found in our recent study, ObamaCare Exchanges: Just Because You Are Eligible For A Subsidy Doesnt Mean You Will Qualify.
First, our study found that many Young Invinciblesthose ages 18-34will not be receiving a subsidy for their insurance from the exchange despite having incomes below 400% of the federal poverty level (FPL) or $45,960 annually.
Second, we found that in most states subsidies will extend up to 400% FPL for those age 52 and older.
See detailed analysis here
As we noted in our study, With a subsidy structure that makes insurance less attractive to the young and healthy but quite attractive to those who are older and sicker, the ObamaCare exchanges are likely headed for an insurance death spiral. The federal data bolsters that claim.
(Excerpt) Read more at conservativeblog.org ...
I can’t think of any people I personally know below 34 who are making even $30,000 unless they work for the government.
The simple math tells you that more (who use less or none = healthy young people) need to be paying in than receiving subsidies or free benefits.
Well, let’s remind the youth that this is what they voted for.
I remember being a young invincible. I usually worked as a freelancer so I could stay home with the kids. I actually WAS invincible. NEVER had a medical claim for more than a routine exam. So I never carried insurance. Truly do sympathize with the invincibles.
My first surgery came when I was 49 and employed by a company that was very generous (ah the good old days) and had marvelous insurance. Two weeks in a lovely hospital (private) room for a problem for which you’d be tossed out on the sidewalk after two days now. A TOSA2D problem. Maybe one day . Or two hours. Or maybe it would be disallowed because it was not an emergency.
Then a week after I got Medicare, my eye went south and I had to have a corneal transplant.
I wonder to this day whether I would have had those problems if I did not have insurance. I take wonderful care of myself, but my “inner patient” really took advantage of insurance coverage, LOL.
So what’s going to happen to the Invincibles when they have to carry insurance? My bet is on sickness, disease, surgeries increasing in that group, which will drive up costs for everyone.
I thank the author for bringing this info to light, however, the author also has made a glaring error.
Let me use a “simplified” example to show my point. A 34-year old makes $40,000 a year and is at 400% of the federal poverty level (FPL). So Obamacare says that someone at 400% of FPL will not pay more than 9.5% of their income on health insurance, in this case $3800/12 = $316.67/month. If their insurance premium is only $316/month, they don’t get a subsidy because the ACTUAL premium is less than the cap. However, if their premium goes up to $400/month, then they will only pay $316.67/month and the tax payer picks up the rest.
So the authors premise that there will be a “death spiral” is faulty. If someone’s income is below 400% FPL and premiums skyrocket, the individual’s monthly health insurance premium is capped. So if the person is not receiving a subsidy, his premium will go up, but only to the cap. Doubtful that it will cause a death spiral, but what it will cause is skyrocketing costs to taxpayers, which is what the author should have focused on instead.
“then they will only pay $316.67/month”
No young person is going to pay the equivalent of a “nice car” payment for health insurance that they do not need.
I never purchased insurance for myself because my employers always provided it.
Now for the first time in 15 years, I will have to pay some for my own insurance, and family + kids is unaffordable.
The democRATS have screwed up big time with this fiasco.
But will anything be done about it?
Depends on how much fraud votes they can swing 11/14.
Come out of hiding. Both of my older sons, married with children, have been making more than that, twice that, since their late 20s and they don’t work for the government. Neither has a college degree either. They are not alone although those ranks have been shrinking fast since der Fuehrer was elected.
You can bet that any illegal in that group will be fully paid for by the rest of us.
Same here. My son is 24 and makes well over $50,000 a year.
He was home-schooled his whole life and did not attend college.
He is self employed.
Independent thinking is what will make these young people successful and happy. The old days of “go to college and be successful” are over.
I’m living in an area where the biggest employers are city government, county government, state government (Tallahassee) and the feds. There is no industry to speak of as the governments have actively run it off. If you’re not working for government and you want to live here, your opportunities are limited.
The crusher is going to be for families where the employer offers employee, but no family coverage. Those people won’t be eligible for subsidies. Not many people making 50k can afford $800-$1000 a month in premiums.
Is it New York or Washington DC?
“Is it New York or Washington DC?”
Tallahassee it Florida’s capital. It’s 50% government and much of the rest is FAMU and FSU. The university actually bought the building of a defense company because “We don’t want that nasty defense business in our nice clean industrial park.” (Actual quote.) So we the taxpayers paid the pre-bubble collapse price for a building so the company would move. They took with them 350 jobs and $80,000,000/yr in contracts. Companies investigating moving here have been told to keep moving. Incredible.
I live under King Cuomo so not much different here. The anti-fracking signs are EVERYWHERE