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  • Side Effects: Young to Pay Higher Health Insurance Premiums

    Remember those lower health insurance premiums Obamacare would bring us?  Don’t count on it—especially if you’re young.  The Associated Press reports that a new analysis by Rand Health predicts premiums for young adults could rise as much as 17 percent under the new law.

    The new age rating requirement is the culprit.  It bars insurers from charging older patients much more than their younger, healthier customers.  Today, the AP notes, “Insurers typically charge six or seven times as much to older customers as to younger ones in states with no restrictions. The new law limits the ratio to 3-to-1….”  So how will insurers make up the difference?  It will be “will be shouldered by young people in the form of higher premiums.”

    The 17 percent premium hike predicted by Rand translates into $300-$500 premium increases for young adults.  Other studies suggest even steeper price hikes.  Jim O’Connor, of the consulting firm Milliman, Inc., predicts increases between 10 and 30 percent.  ShoutAmerica, a Tennessee nonprofit, predicts increases as high as 50 percent.

    And that’s just from the new age rating restriction.   Other provisions, such as the rich benefits insurers will be required to offer in all health plans, will add further to premium prices.

    And don’t forget the taxes.  When asked if health premiums would go up, Aetna CEO Ron Williams responded, “The answer is yes, and some of the things that will drive those premiums are significant additional taxes the industry will ultimately have to pay in the first year.”

    Heritage analysts have explained how premium increases will discourage young adults from purchasing insurance altogether, opting to pay the much less expensive penalty instead.  That will only fuel a “death spiral” of out-of-control premium price hikes.

    For lawmakers who really wanted to lower the cost of insurance and help more Americans buy it, Obamacare was the wrong way to go.  To learn more about the right way, click here.

    Posted in Obamacare [slideshow_deploy]

    20 Responses to Side Effects: Young to Pay Higher Health Insurance Premiums

    1. Pingback: | UNCOVERAGE.net

    2. JohnR22, michigan says:

      God, I LOVE this! I'm approaching Medicare age and I just love the fact that we'll be doing a massive wealth transfer from young working people to…ME. Oh, I know there's some blather about cutting $500B from Medicare to pay for Obamacare, but it will never happen. To cut Medicare would require a vote in the congress, and NOBODY who wants to be reelected will vote to cut $500B from Medicare. And for all you youngsters out there, don't worry too much; I'm sure that in 30 years Medicare will be a fully funded lavish program that will pay for 100% of your medical needs (heavy sarcasm).

    3. Jim says:

      The clear light of dawn daily illuminates the truth of even the most epic and cynical of lies. At least we Americans, at least those who are awake, can now appreciate what it's like to live or to have lived under 9

      Cesar Chavez, Daniel Ortega and Juan Peron, to mention only notable demogogue-nation wreckers in the Western Hemisphere.

    4. Tim AZ says:

      This Health care side effects angle smacks of something the PRC would instruct their media outlets to use to make the direct effects of their health care plan appear to have been designed with good intentions. We all know that there are no good effects to be had in Mao-Bama's hell care plan. I'm just wondering if this is how Heritage was told by the White House to report the effects of hell care. Or maybe it's Heritages brand of CYA to avoid direct attacks from Mao-Bama's administration. The latter explanations would be slightly more palatable.

    5. Brad, Chicago says:

      This is one of the worst bait-and-switch moves the Democrats pulled in this bill. They talk about it as if the only change will be a reduction for the high end, but the reality is that the middle will stay the same and the extremes will pull closer, bringing the high end down and the low end up. The question is whether they actually understood that from the beginning. Either they are completely ignorant of the way the economy works or they knew and lied to us. Wait… maybe they were thinking that the young people who would see higher premiums are the people who weren't paying for insurance anyway, so anything they buy would be a higher cost. Or maybe they think they have everyone my age indoctrinated into believing they have the responsibility to sacrifice for millions of people they don't know.

    6. delray7, Florida says:

      Does anyone know if the Massachusetts healthcare plan, aka Romneycare, effects a similar increase in the proportion of insurance premiums charged young adults relative to seniors? I am aware that, like Obamacare, Romneycare also contains an individual mandate to buy insurance, but I don't know whether it reworks the insurance premiums among different age groups the way Obamacare does.

    7. Brad, Detroit, MI says:

      Maybe this is irony in the form of "social justice". I believe that the younger voters are what helped put Obama over the top in the last election. I wonder if this was the Hope and Change they voted for . . . ?

      Be careful what you wish for – because you just might get it.

    8. Sam, WI says:

      With the kind of premium rate increases that insurance companies are going to put in place, I'd prolly be better off paying for my medication myself, and it isn't cheap by any means.

    9. Ben, Tx says:

      Sam, yes, it will be significantly cheaper for the young and healthy to pay out of pocket for medical expenses and pay the $750 fine annually rather than purchase medical insurance.

    10. Annie321, Hingham, M says:

      Shocking! You mean Obama lies again?! So…you can't just demand far more generous insurance benefits in the form of no age discrimination, no pre-existing conditions and no annual or lifetime limits AND have premiums go down? Only in la-la land. And yet, Obama managed to convince enough people to support it and he managed to twist arms and bribe enough cogressional dems to get it done. I wonder if fewer people will actually have insurance after Obamacare than before. And with higher premiums. And higher taxes and massive medicare cuts. Congratulations Dems – you've created a mess which will haunt you for generations, I hope.

    11. Steve Wahls Nebraska says:

      Do the prisoners in our prisons get to pay the fines on not paying for their health insurance after they get out of prison? What about those that are in for life? There are 2,500,000 prisoners in the US owing a $2000.00 fine that’s $5 billion in fines not paid per year. How many IRS agents will it take, to take care of that?

    12. Peter says:

      The reason Democrats don't care and did not care about adverse consequences is that they are convinced that it will be impossible to reverse the bill and once benefits begin they will have a built-in constituency that will help them either regain or retain their majority. The next step will be to push for immigration "reform" and get another 10-12 million people in line for benefits, then it will be Us vs. Them, the "rich" against the not-so-rich who are simply asking for more fairness and equality. That will be the narrative and any deficit spending needed to support the new programs will be said to be temporary and necessary to deliver badly needed services.

      We can only hope that this strategy will not work once enough people realize that it will only bankrupt the nation, especially combined with the massive amount of spending and borrowing we are doing well beyond what HC will demand. But this had to have been the strategy. Unless the Dems really are just plain stupid.

    13. Ben C. Ann Arbor, MI says:

      Delray7:

      Yes, the cost under Romneycare is impressive. A student from Michigan is going to school in Massachusetts where her policy is about $850 a month ($10K per year). The same policy in Michigan is $50 per month or about $600 a year. Both are high deductible policies suitable for her age. She chose the Michigan policy which is vaild in Mass. I am sure young adults will be real happy with Obama when this expense becomes reality.

    14. Tim AZ says:

      Describing the results if Mao-Bama care as unintentional by using the term side effects is at the least perverse. Every bit of text in Mao-Bama care was intentionally evil. Stop giving these sadists the cover of good intentions.

    15. George,Utah says:

      This new Healhcare reform inovation is going to save America. Instead of spending money on a Stimulus to get people back to work, let us fine people if they do not buy a new car every year. We can also fine people if they do not buy televion sets, computers, furniture, new homes,etc

      We will collect enough money in fines in the next 20 years to eliminate all the US Debt and everyone will have jobs. The Stock markets will soar.

    16. Diana from Pennsylva says:

      Just what all of us uneducated, conservative, tea partiers said would happen!!!

      First of all I take issue with the fact that the young cannot afford health care. When my son came off of my employer-paid health care plan, we paid high cobra expenses for the first year of coverage. Then we decided to do an on-line search for more affordable health care for him. I was astounded to find that he could purchase health care for a mere $23.80 a month if he chose a plan with a $2,000 deductible. Instead he opted for coverage at $113,00 a month that provided a quality insurer PPO plan, with no deductible, $15.00 doctor's visit co-pay and paid prescriptions! Granted he had no preconditions and does not smoke or drink, but after filling out the on-line questionnaire, he was covered by a great plan at a good price, and has been happy with his coverage for the past 3 years under this plan. I assume that his premiums will now go up even though he rarely requires medical attention.

      During a drive through one of the lower income areas of our local town this afternoon, I noticed that 90+% of all the dwellings in the area have satellite dishes affixed to the units. I wonder if these folks have health care coverage? I would venture that they do not, but instead choose to pay monthly dish fees. I believe that many folks simply refuse to pay health care premiums and instead opt to take a chance that they won't need, or realize that they will get free care if they need it anyway.

      I admit that there are problems with our current health care system. But, lets identify the problem areas and fix them, instead of scrapping the entire "best in the world" health care system. Can we not learn from other countries, as well as Massachusetts, who have implemented government-run health care to eventually end up with a poor system that is expensive and ultimately results in rationing?!? Where is the common sense in Washington?

    17. Pingback: MoConservativePatriot.com » Obamacare’s “unintended”(a-hem) Side Effects

    18. Cheri, Illinois says:

      Well said Diana from Pennsylvania!!!!!

    19. Pingback: One Hundred Days Later: The Best Way Forward with Obamacare is to End It | Step Down Obama

    20. Pingback: Top Ten Side Effects of 2010 | The Conservative Papers

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