From CNBC comes the “D’oh” moment for ObamaCare supporters.
Young adults make up a disproportionate share of the nation’s 50 million uninsured. Getting them to sign up for insurance coverage will be a major focus of the government this fall during the roll-out of the Affordable Care Act, or ACA, also known as Obamacare.
It’s also important for companies with 50 more full-time employees to offer their young adult workers coverage, and get them to sign up, or face potential penalties starting in 2014. That may mean a big shift in benefit plans for some employers.
JLF’s Katherine Restrepo explained last week why the Invincibles are the focus of the Obama administration.
The administration is desperate for young, healthy individuals to obtain health coverage. If these individuals refuse to do so, they must pay a penalty in the form of a tax. The penalty, however, comes at a much lower cost than otherwise purchasing health coverage. More and more young “invincibles” don’t see the point in signing up for coverage until they get sick anyways, since the law now prohibits health insurers from discriminating against consumers with pre-existing conditions.
The invincibles that refuse to purchase health insurance via the exchanges defeats Obamacare’s intent of offering health plans at lower premiums to the older, sicker population. This is because the young and healthy act as the “anchor” that brings down premiums for sicker patients. They will be paying higher premiums than before to subsidize costlier consumers. As it is most likely that this subpopulation will say “no” to signing up for coverage, a majority of older, sicker patients will be left on the exchange and will have to pay much higher premiums than anticipated.
So much for the “Affordable Care Act.” ObamaCare is nothing more than a massive government overreach.
Train wreck coming.
