fficient number of thirty-somethings to also join. Problem is, the health plans are too pricey to make economic sense for many young adults.
Just how costly are the Obamacare plans for young beneficiaries?
We ran the numbers. Here are our results:
Overall, the Federal government reports that 32% of on-exchange enrollees as of March 1st are under the age of 34. And many of these are teenagers who are part of family policies, not the young yuppies that Obamacare is fervently targeting. Earlier estimates showed only 20% of enrollees were between the ages 18 and 34.
The final number of young enrollees is well below the required cohort. Premiums will rise next year as a result of the adverse selection of older, and probably less healthy consumers. Why are young adults staying away? In one word, economics.
Obamacare is asking young adults to effectively subsidize the healthcare costs of older Americans. So far, Millennials are resisting this age-based transfer of wealth. Many are clearly opting instead to remain uninsured, or else they are buying cheaper health plans that don’t conform to Obamacare’s regulatory dictates.
even outside the exchanges.
"It's all closed down. You cannot buy a policy that is a qualified policy for the purpose of the ACA (the Affordable Care Act) until next year on January 1," says John DiVito, president of Flexbenefit which has 2,500 brokers.
“In all likelihood," says Laszewski, "we've only signed up somewhere between one in five and one in seven people who were uninsured prior to the start of ObamaCare."
That means millions are left outside the health insurance market. There is short term insurance, but anyone with a pre-existing condition can be turned down.
The reason sales of health insurance were crammed into short enrollment periods was so insurance companies would have some certainty about who would be in the risk pool, allowing them to set their rates accordingly.
Goodman explains, "they fear that the only people who will try to buy are people who are sick, and they are going to be expensive. So it’s built into the screwy logic of the whole ObamaCare system."
TPS was created in 2011, in time for our first 9/11 Truth Marathon. Many thanks to Jim and SkyBlueEyes for helping with the background design and layout and Sky, BP, IC Freedom and others for all the hours spent in the Conference room for our Popcorn & Movie Topic Nights.