During the 2008 campaign, President Obama promised the American people health care reform that would lead to “fair and stable premiums.” In fact, then-candidate Obama promised voters his plan would “bring down costs for the entire country.”
The Congressional Budget Office has already dispelled this myth for young adults. And a new analysis reported by the Associated Press confirms a disturbing reality: the president’s promise rings hollow for healthy, young adults who can expect a spike in their health insurance premiums in just four short years:
“Beginning in 2014, most Americans will be required to buy insurance or pay a tax penalty. That's when premiums for young adults seeking coverage on the individual market would likely climb by 17 percent on average, or roughly $42 a month, according to an analysis of the plan conducted for The Associated Press. The analysis did not factor in tax credits to help offset the increase. The higher costs will pinch many people in their 20s and early 30s who are struggling to start or advance their careers with the highest unemployment rate in 26 years.
“Consider 24-year old Nils Higdon. The self-employed percussionist and part-time teacher in Chicago pays $140 each month for health insurance. But he’s healthy and so far hasn’t needed it. The law relies on Higdon and other young adults to shoulder more of the financial load in new health insurance risk pools. So under the new system, Higdon could expect to pay $300 to $500 a year more.”
(Associated Press, “Health premiums could rise 17 pct for young adults,” 3/29/2010)
Today’s bad news for young people is just the latest evidence that a government takeover of health care fails to bring down costs – in other words, failing to solve the problem at the root of our nation’s health care challenges.
“Buyers, beware: President Barack Obama says his health care overhaul will lower premiums by double digits, but check the fine print.
“Premiums are likely to keep going up even if the health care bill passes, experts say. If cost controls work as advertised, annual increases would level off with time. But don't look for a rollback. Instead, the main reason premiums would be more affordable is that new government tax credits would help cover the cost for millions of people.”
(Associated Press, “Will Health Care Bill Lower Premiums?,” 3/17/2010)
At a rally earlier this month, President Obama suggested to the young adults in attendance that soon employers will “take thousands of dollars out of your paycheck because the insurance companies jacked up our rates.” Now that ObamaCare has been signed into law, it appears that fate has been sealed for young adults.
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