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Rate Shock Threatens Young Americans
Eagleye Blog ^ | February 16, 2013 | Bethany Stotts

Posted on 02/16/2013 8:28:53 AM PST by eagleye85

Young Americans are faced with joblessness, skyrocketing school loans, and burdensome entitlement programs. Now, health care prices will be rising considerably, threatening “rate shock” on America’s consumers. Aetna is “cautioning that premiums for plans sold to individuals could rise as much as 50 percent on average and could more than double for particular groups such as the young and healthy,” according to the Washington Post’s N.C. Aizenman.

For Aizenman, the question is not whether these hikes are justified, but whether young consumers will skip health insurance entirely–and take the penalty instead.

“Most of the new rules that could push up premiums will not apply to plans sponsored by large employers, only to those sold to individuals and small businesses,” reports Aizenman. “These policies will be available on insurance marketplaces, or ‘exchanges,’ that the law sets up in each state beginning in 2014, and that are ultimately expected to serve about 26 million people.”

“The law will require insurers to offer a generous package of benefits for exchange plans, including coverage of maternity care, prescription drugs and treatment for mental illness. It also caps customers’ out-of-pocket expenses.” Other drivers for the expense, Aizenman reports, is the pre-existing conditions requirement and the fact that “insurers will be allowed to charge their oldest customers only three times as much as their youngest.”

“In most states, older customers are paying at least five times as much.” Hence, in a complete market failure, insurance companies will hereby be forced to charge the young more in order to meet a government quota rather than because the young are sicker than before.

Aizenman points to Jonathan Gruber, “an economist and key adviser to Obama during the debate over the health-care law,” as saying that in four of five states he studies, “more people will end up saving money than losing it” once you factor in tax subsidies. This MIT economist is widely known for his sunny predictions about Obamacare.

In addition, as I wrote in January 2010, Professor Gruber was “roundly criticized for promoting the Obama Administration’s health care reform efforts while receiving extensive government funding as a consultant—and not telling journalists about the connection.” The “[w]idely cited health-care economist […] accepted money from the federal government at the same time he advocated for reforms proposed by the Obama administration.” You can read more here.

“If these young and healthy people find the pinch to their wallets too painful, they could either go without insurance and pay a tax penalty or take advantage of a provision in the law that allows those younger than 30 to buy a high-deductible ‘catastrophic’ plan that will presumably be cheaper,” writes Aizenman. “Gruber doubts that either option will prove popular.”

“The $1,600 or $2,000 annual price tag many will be facing on the exchanges is still an appealing deal, [Gruber] said–especially in light of the nearly $700 minimum penalty they will have to pay for failing to get insurance by 2016.” Gruber seems to be living in an alternate universe. As a recent Harvard Institute of Politics study shows, Millennials today are 9.7% unemployed. As for the underemployed, 31.2% of Millennials currently work on a part-time basis.

While these numbers may not sound like much to a middle-aged person presently faced with much higher health care costs, these part-time employed 20-somethings are likely to feel the pinch of an extra $1,600 or $2,000, not to mention $700 as a penalty. The “Affordable Care Act” doesn’t seem quite so affordable, does it?


TOPICS: Government; Health/Medicine; Politics; Society
KEYWORDS: aetna; bhohealthcare; generationy; healthcare; millennials; obama; obamacare; washingtonpost

1 posted on 02/16/2013 8:28:57 AM PST by eagleye85
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To: eagleye85
For Aizenman, the question is not whether these hikes are justified, but whether young consumers will skip health insurance entirely–and take the penalty instead.

The way Obamacare is written, they'd be foolish to want to get insurance. Since the idiot law prohibits pre-existing conditions from being excluded, they can pay the penalty now, and when they get sick, just sign up for insurance. It's like going without car insurance until you're in an accident, and then dialing up a car insurance company and wanting coverage for the accident you just had. Aren't politicians geniuses?

2 posted on 02/16/2013 8:32:11 AM PST by COBOL2Java (Fighting Obama without Boehner & McConnell is like going deer hunting without your accordion)
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To: COBOL2Java
Aren't politicians geniuses?

The same ones that keep spending money that doesn't exist, yeah.

3 posted on 02/16/2013 8:34:19 AM PST by OneWingedShark (Q: Why am I here? A: To do Justly, to love mercy, and to walk humbly with my God.)
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To: eagleye85

Let’s see. Spend $2,000 a year or $20,000 a year. Which makes the most economic sense?


4 posted on 02/16/2013 8:41:28 AM PST by PAR35
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To: eagleye85

More proof of the saying:

If you think healthcare is expensive now just wait until its free.


5 posted on 02/16/2013 8:43:14 AM PST by 43north (BHO: 50% black, 50% white, 100% RED)
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To: eagleye85

Surprise! The Affordable Care Act doesn’t mean affordable coverage after all!

Those who voted for Obama both times are in for a shock on a lot more than health care premiums. This is just the beginning.

As the saying goes, elections have consequences.


6 posted on 02/16/2013 8:44:12 AM PST by fatnotlazy
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To: eagleye85
Most of these young college idiots are liberals and they still vote for Obama and democrats(socialists) even though they can't find a job after graduating from college( at least 50% can't find a job).

So they move into their parent's basements and go post on the Internet smearing the “evil” Republicans ,smearing capitalism and praising Obama as that becomes their full time job

Hey dumb liberals/democrats, believing in and trusting government is no way to go through life

7 posted on 02/16/2013 8:44:21 AM PST by Democrat_media (media makes mass shooters household names to create more & take our guns)
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To: eagleye85

Libtards don’t mind if Obamacare fails. They will use that crisis to push for single payer socialized medicine, which is their real goal.


8 posted on 02/16/2013 8:46:46 AM PST by mjp ((pro-{God, reality, reason, egoism, individualism, natural rights, limited government, capitalism}))
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To: eagleye85
Most physicians make less now than before, hospital stays are shorter, lots of tests and treatments are now denied by insurers, Medicare covers only a fraction of true costs, etc. So why are costs continuing to go up, despite the intervention of our self-serving ideological government?

The reasons are myriad, but in large measure are directly related to the intervention of government and policy wonks. It pays much more and gives you a much better lifestyle if you spend your time as a ‘policy wonk’ instead of actually doing something useful (like practicing medicine) for a living.

It's only going to get worse.

9 posted on 02/16/2013 8:55:47 AM PST by pieceofthepuzzle
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To: eagleye85

And you voted for it. Consider it sensitivity training.


10 posted on 02/16/2013 8:59:26 AM PST by Excuse_My_Bellicosity (Liberalism is a social disease.)
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To: COBOL2Java
Since the idiot law prohibits pre-existing conditions from being excluded, they can pay the penalty now, and when they get sick, just sign up for insurance.

Actually as long as they do not have a tax refund coming, they do not even have to pay the penalty.
11 posted on 02/16/2013 9:06:39 AM PST by microgood
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To: PAR35
Spend $2,000 a year or $20,000 a year. Which makes the most economic sense?

My guess is that many young people will tell the gov't to pound sand and won't buy coverage OR pay the fine. What does the govt intend to do with probably millions of newly minted law breakers? You can't get blood from a turnip, and I think a high percentage of these poor guys are going to become turnips.

12 posted on 02/16/2013 9:18:34 AM PST by lafroste
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To: lafroste

Garnishment of future wages???


13 posted on 02/16/2013 9:21:55 AM PST by goodnesswins (R.I.P. Doherty, Smith, Stevens, Woods.)
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To: eagleye85

Primarily Obama voters. They are sure Obama and the Dems will save them. The sooner and more painful the consequences, the better.


14 posted on 02/16/2013 9:40:48 AM PST by Cyber Liberty (Obama considers the Third World morally superior to the United States.)
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To: eagleye85

Hey. No worries. Obama said he would care for them in his 13th, 14th and 15th terms in office. They wanted him. They voted for him for free stuff. Well, they are stuck with him and the results of their lives because of what he did. This will destroy America more and more for years and years. Good luck for those young folks who fell for the garbage of the King of DC.


15 posted on 02/16/2013 9:44:02 AM PST by RetiredArmy (1 Cor 15: 50-54 & 1 Thess 4: 13-17. That about covers it.)
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To: Democrat_media

You are correct.

2+ generations of progressive controlled education (preschool thru grad school) has worked well for liberal goals.

Young adults now know far more about “climate change” than the US Constitution.


16 posted on 02/16/2013 9:45:08 AM PST by nascarnation (Baraq's economic policy: trickle up poverty)
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To: eagleye85

Simple solution. Get rid of the insurance companies. Healthcare was better and cheaper before them. And now they are threatening us and some of you aren’t seeing that showing them the door is the way out.


17 posted on 02/16/2013 9:47:11 AM PST by sakic
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18 posted on 02/16/2013 9:54:23 AM PST by RedMDer (May we always be happy and may our enemies always know it. - Sarah Palin, 10-18-2010)
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To: sakic

That’s exactly what the authors of 0bamacare had in mind, but they want the bankrupted insurance companies to be replaced with a monstrous federal bureaucracy.


19 posted on 02/16/2013 10:00:44 AM PST by Trod Upon (The Second Amendment acknowledges our inherent right to revolt if tyrannized.)
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To: microgood
Actually as long as they do not have a tax refund coming, they do not even have to pay the penalty.

I do not think that this is correct. As a seasonal paid tax preparer, we are seeing guidance that taxpayers, lacking proof of coverage, will have the penalty added to their 'tax burden' like early withdrawls from a TIRA and the 'SE' tax. So the computation of penalty will be done in the tax season of 2015 for failure to carry insurance in all of 2014 regardless of refund or balance due status.

I believe that this is similar to the current Massachusetts "RomneyCare" setup but obviously the bells and whistles of the IRS still are being built as we speak. I will note that I am seeing many employers and payroll companies (like ADP) already putting the "DD" line indicator for health insurance coverage on this year's W2s. Precursor to the nightmare to come!

20 posted on 02/16/2013 10:53:24 AM PST by SES1066 (Government is NOT the reason for my existence but it is the road to our ruin!)
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To: OneWingedShark

Maybe they realize that if they tell the truth to the American people, they’ll be fired.


21 posted on 02/16/2013 11:21:57 AM PST by dhs12345
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To: fatnotlazy
There will be a lot of “I told you sos” when this thing kicks in.

Not that it will mean much because it will be too late to do anything about it. We will be stuck.

22 posted on 02/16/2013 11:26:01 AM PST by dhs12345
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To: goodnesswins
Garnishment of future wages???

WOW -- Do you realize how easy that would make recruiting for an active resistance movement?

23 posted on 02/16/2013 11:28:35 AM PST by OneWingedShark (Q: Why am I here? A: To do Justly, to love mercy, and to walk humbly with my God.)
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To: SES1066
I do not think that this is correct. As a seasonal paid tax preparer, we are seeing guidance that taxpayers, lacking proof of coverage, will have the penalty added to their 'tax burden' like early withdrawls from a TIRA and the 'SE' tax. So the computation of penalty will be done in the tax season of 2015 for failure to carry insurance in all of 2014 regardless of refund or balance due status.

It would not surprise me if the IRS tries to collect it like other taxes because they routinely ignore laws passed by Congress. But according to ACA, they cannot put a lien on you or take any criminal action against you for the ACA penalty. They can only get it from a refund due to you. What the IRS often does is what they want until someone actually sues them to change their behavior.

Another example of the ignoring ACA is that for states not implementing the exchanges and forcing the Feds to do it for them, the subsidies provided for those with lower incomes are not allowed - it is only allowed for the states the implement the exchanges. The IRS, however, is going to allow the subsidies in these cases as well until they are sued and told they cannot.
24 posted on 02/16/2013 12:01:03 PM PST by microgood
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To: Trod Upon

Dead wrong.

Obama is in the pockets of the insurance companies just like all the presidents before him. No one in power wants the insurance companies out. They are on the same team.

If we could get the insurance companies out our lives would be far better.

Hospitals have been getting worse for many years. Used to be if you went in you got proper care from RNs and were able to stay there until you got better. Now, RNs have been replaced by people with no medical training, unless you count emptying bedpans. This is so insurance companies and hospitals can be more profitable.

Obama is a horror show, but the healthcare system in America collapsed years before any of us knew Obama’s name.


25 posted on 02/16/2013 2:20:55 PM PST by sakic
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To: eagleye85
My employer informed me this week, that the health insurance (no dental, vision or life)prememiuns for my husband and me will go up 40% from $2000.00 to $2800.00 per MONTH starting in April.
26 posted on 02/16/2013 2:30:30 PM PST by muggs (Hope and Change = Hoax and Chains)
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To: dhs12345

” Not that it will mean much because it will be too late to do anything about it. We will be stuck.”

***

True. It will adversely affect all of us. But the evil side of me will derive some perverse pleasure from watching the true believers when they realize the idol they worship so fervently lied to them.


27 posted on 02/16/2013 2:34:13 PM PST by fatnotlazy
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To: OneWingedShark

HA....


28 posted on 02/16/2013 4:39:18 PM PST by goodnesswins (R.I.P. Doherty, Smith, Stevens, Woods.)
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