Saturday, February 16, 2013

Obamacare will result in much higher premiums for most young adults; problems with uninsured risk pools for rest of 2013

Washington Post reporter N.C, Aizenman is reporting on major problems with “Obamacare”.
On Sunday, February 17, the Washington Post will report that federal funds to support high risk pools will run low (and their renewal is threatened by sequestration and budget problems); it had been intended to last until 2014 (link). 
On Saturday, Aizenman reported than young and healthy adults will pay much more (sometimes three times as much) for their own care because of the new law, partly because the new law forces insurance companies to cover mental health, pregnancy, and other items.  For example, men who do not cause pregnancies will be subsidizing those who do. 

Furthremore, Florida, New Jersey and Tennessee have opted out of running their own exchanges, which will be run by the federal government.  All this has to open job opportunities in I.T., which I’ll address soon.
The philosophical problem is “am I my brother’s keeper”.  The GOP seems to resist the idea – except within the “natural family”. 
Aggravating the problem for young adults is the increase in the use of underpaid interns by employers (who probably expect the interns to remain on their parents’ health insurance), as described by Hannah Seligson, “The Age of the Permanent Intern”, here.

Update: Feb. 18

Robert Pear, in the New York Times, p. A9, writes that many smaller companies with largely younger employees will self-insure (with special "stop-gap" policies), still removing healthier people from the general market and causing mainstream companies and their employees to pay higher premiums, even under Obamacare, as explained here

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