Will
the Young (aged 18-40) Scuttle Obamacare?
Scuttle
– 1) to sink a vessel by deliberately opening the seacocks or making openings
at the bottom; 2) to disable or destroy (plans, hopes, etc).
Dictionary
Definition
Health
insurance is a product, not a social vision. Obamacare will cause insurance
premiums to rise sharply for the healthy and the young. When it comes to products, Americans aged 18
to 40 act like consumers of all ages everywhere. They have a price point and when the price gets
too high they get busy making changes.
Douglas Holtz-Eakin, “Sharp
Shoppers Scuttle Obamacare; The
Young Scuttle Coverage to Avoid Higher Premiums, “ Real Clear Politics, May 20, 2013
Will
young Americans sink Obamacare?
Obamacare rests on the premise that the young and healthy will pay for
the old and the sick. We are all in this together, the premise goes, so let’s redistribute
the benefits so everyone gets a fair shake.
Obamacare
is a bold social vision, perhaps a bold
socialist vision. The only problem is
that America is a consumer-based capitalistic country.
It is a nation that believes in a fair price for each individual, in equal opportunities to get a good deal for
each product in the marketplace, not the
same price for all, not the
same-size-fits-all for all.
Health
care as a product is where a
consumer-driven vision comes in.
According
to a recent national survey conducted by the American Action Forum among the young who already have insurance.
·
If health premiums rise 10%, 83% will continue to buy health insurance.
·
If premium rise 20%, 65% will continue
to buy insurance.
·
If premiums rise 30%, 55% will still buy health insurance.
·
At the 30% level, 20% would rather pay the penalty rather than
pay the premium.
The point is: the young are price sensitive and regard health
insurance as a product not a social vision.
Douglas Holtz-Eakin, president of American Action
Forum, and former director of the Congressional Business Office, concludes:
“Obamacare
is a controversial law whose provisions have received a mixed public
reception. These results are echoed by
the sentiments of the 18-40 year olds polled by the American Action Fourm.
Obamacare is intended to expand insurance coverage by mandating that those same
young Americans form a lower-cost insurance pool. This group, however, powerfully undercuts
this goal . Behaving like all price-conscious consumers, young Americans will
drop their insurance in the face of sharp premiums increases.”
The Moral of This Tale
The moral os this tale might be: When the going gets tough for young American health care shoppers, the tough stop shopping for health insuarance.
The Moral of This Tale
The moral os this tale might be: When the going gets tough for young American health care shoppers, the tough stop shopping for health insuarance.
Tweet:
Obamacare
implementation depends on the young
(aged 18-40) buying health insurance to support the old. This may not be
forthcoming.
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