Why Obamacare is a bad deal for young people

Julie Borowski on Obamacare and young people

The success of Obamacare relies on some 2.7 million young Americans — Millennials or “young invincibles,” as they often called — signing up for health insurance through the state exchanges to help defray the costs of sick and older people.

But in a recent video, Julie Borowski humorously explains why Obamacare is a pretty bad deal for young people, regardless of what President Obama says.

“The Affordable Care tries to bribe young people with free stuff,” notes Borowski, pointing to “free birth control,” as an example. But she explains that these “free” things aren’t free at all, the costs borne by insurance companies to provide these benefits are worked into the cost of health insurance premiums.

“You can’t force insurance companies to pay for more expensive stuff and expect that the insurance companies won’t go up, because that’s what happening,” she says. “You may not directly paying for birth control at the pharmacy counter, but you’re still paying for it, and probably significantly more.”

“Also, Obamacare requires insurance companies to cover maternity care, mental health services, and a lot more,” Borowski notes. “Maternity care coverage will be mandatory for dudes!”

These mandates increase the price of health insurance coverage for everyone. How about letting everyone choose the plan that makes the most sense for them and their needs. Or, better yet, how ‘bout forcing people to buy a private product, government?” she adds.

Borowski also notes that Obamacare is causing businesses to be reluctant to hire new workers and leading them to cut back on health insurance coverage for existing employees, pointing to a CBO report which found that 7 million people will lose their employer-based coverage.

To her point about the cost of coverage, that may be one thing that keeps young people from purchasing health insurance. The Wall Street Journal provided an analysis of the 36 states where the federal government will oversee the exchanges and showed why those who will purchase coverage are in for rate shock.

The paper’s analysis found that a 27-year-old non-smoker living in Columbus, Ohio would see a 336% increase, from $47 per month ($564/year) for the lowest cost pre-Obamacare plan to $205 per month ($2,460/year) if they purchased the so-called “bronze” plan available on the federal exchange.

That estimate didn’t include subsidies available to individuals who purchase coverage on the state exchanges. If the 27-year-old non-smoker living in Columbus makes $25,000 per year, they would receive a tax credit of $760 to help cover the cost of their yearly premiums, according to the Kaiser Family Foundation’s subsidy calculator. That’s still a 200% increase.

Many young people will opt not to purchase health insurance coverage, according to a recent study by Dr. David Hogberg, because they don’t need it and/or they can’t justify the expense, choosing instead to pay the individual mandate tax.

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