Report: Obamacare premiums could cost the young 14 percent of income
The Affordable Care Act may not be so affordable for younger workers.
Premiums alone will claim 14 percent of the average 30-year-old’s income in Illinois, American Enterprise Institute analyst Scott Gottlieb writes at Forbes.
Actually using any health care services will eat up even more cash, including a deductible that’s $5,000 for most plans and a $6,350 out-of-pocket maximum.
Gottlieb looked at four states: California, Texas, Pennsylvania and Illinois. Pennsylvania had the lowest rates for Obamacare health coverage, with an average annual premium payment of $1,620 for someone who makes $20,000 per year, with a $600 deductible. But making just $5,000 more per year skyrockets the cost up to $2,328 in yearly premiums and a $4,000 deductible.
For people who are young, healthy and unlikely to use health care services regularly, the cost of Obamacare insurance is prohibitive. Obamacare supporters have attempted to sell coverage to the young by offering them security in case they fall doing a keg stand.
Taking a look at the costs for those making $30,000 per year, the median salary Gottlieb examined, makes it clear why young, healthy people aren’t buying exchange coverage.
In Arizona, someone making $30,000 will spend over 9 percent of their annual income on premiums. That climbs to over 10 percent in Pennsylvania, almost 11 percent in Texas and a whopping 13.64 percent in Illinois.
All for a service they don’t intend to use.
The participation of the young and healthy is necessary in order to subsidize the high costs of care for older and sicker patients, who use more health care services.
The administration has spent the last month prodding young Americans to sign up for health coverage. It’s probable that their efforts have spurred March’s increased numbers on selected plans so far. But given the huge costs for those that already don’t have much to spare, young Americans may be the least likely to follow through and buy an exchange plan.
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