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Health Premiums Could Rise 17% for Young Adults
April 1, 2010
Remember all that talk from White House officials about how premiums will fail to rise under ObamaCare? In case you don’t, here’s a direct quote from the President when he spoke in Cleveland the week of March 15, 2010:
"You'll be able to buy in, or a small business will be able to buy into this pool," Obama said. "And that will lower rates, it's estimated, by up to 14 to 20 percent over what you're currently getting. That's money out of pocket."
He went on to say that employers would see premiums fall as much as 3,000 percent.” What?! Whether he meant 3,000 percent or $3,000, he is wrong. Let’s fact check, shall we? According to the Associated Press, Obama found the information on employer savings from a Business Roundtable report. The problem is that this report did not consider specific legislation or even the final language of the health care bill ultimately signed into law. Instead, the Congressional Budget Office (CBO) concluded that premium savings would be much more modest at roughly 3 percent.
Now, let’s go back to the previous statement – that people purchasing individual insurance will save “up to 14 to 20 percent.” Ironically, this comes from the same CBO report, but it’s not the full story. CBO said premiums would rise 10 percent to 13 percent for individuals in this market, compared to what they are paying now. The savings of 14 to 20 percent refer solely to those who choose to maintain their current insurance, which will likely become inadequate once other options are presented.
Unfortunately, that’s not all. We are now hearing that health premiums could rise as much as 17 percent for young adults. The reason? Under ObamaCare, people in their 20s and early 30s will be forced to shoulder the medical costs of older Americans more than ever before. This could tack on an additional $42 to their health insurance each month. But, it should be said that “children” will get to remain on their parents’ plan until the AGE OF 26! Does anyone else think this is absurd? What 26-year-old do you know who deserves the title of “kid?” I am still a few months away from turning 26 and I have been accountable for my own health insurance for 4 years. Yes, it was hard at times, but I would not have had it any other way. It is unfortunate that a majority of young adults, doing their best to make it in the world post-college, will have to dish out even more of their hard earned money to subsidize not only older Americans, but those looking for one more excuse to postpone the responsibilities of adulthood.
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