According to the medical director for student health services at Clayton State University, “We should be encouraging Millennials to save for their first down-payment on a home, or free themselves of debt by paying off student loans.” In a report for The Hill (online, Jan. 22) Deborah Ann Travis Honeycutt, M.D., refers to increased costs for Obamacare, targeting those young persons defined as Millennials. Honeycutt claims such ACA-based healthcare expenditures couldn’t be coming at a worse time for categorized youth between the ages of 16 and 29 years. The Hill report also advises the unemployment rate for Millennials stands at 14.7 percent.
Honeycutt adds, “Typical20-somethings in Georgia now face premiums averaging $2,750.00 per year – a 179 and 108 percent increase for men and women, respectively, over what similar pre – Obamacare plans cost.” The student health services medical director of the Georgia based university describes this as, “a demoralizing reality for college students working their way through school while still having adequate time to devote to their studies.”
According to a May 22 Hill article by Elise Viebeck and Peirre de Dreuzy, states are trying to narrow down dates for the release of 2015 premium costs under Obamacare. Their decisions may well “guarantee a drumbeat of news about rate hikes all the way to the November midterm elections.”
Premiums are anticipated to increase in several states, as they do yearly. What is key, though, are the actual amounts of such increases, as they, “could go a long way toward determining how much political damage Obamacare inflicts on vulnerable Democratic lawmakers.” Some areas could see significant increases, the Hill report adds.
States with fewer insurance carriers on the exchanges, those with a more elderly and ill demographics, as well as those not meeting sign-up goals, will have a tendency to see costlier premiums.
Viebeck and de Dreuzy report, “Health rates on the individual and small-group markets usually attract little to no attention from the political press. This year will be different.”
Under Obamacare, more sick people, who require additional care, gain coverage. But New York State passed a law in 1993 which mirrored the Affordable Care Act in a lot of ways. It required insurance companies to accept all customers, much like Obamacare ends pre-existing conditions. It went beyond the health overhaul in requiring carriers to charge all customers the exact same premium. The health care law allows insurers to charge older consumers three times as much as young subscribers, meant to cover the higher medical costs that these customers tend to have. So instituting Obamacare will actually lower premiums in New York state.
Author claims that Obamacare will be a disaster for both seniors, doctors and hospitals. He also claims that universal health care for all can be assured without Obamacare, with no coercive individual mandate, no job-killing employer mandate, and a savings to taxpayers of roughly $2 trillion over the next 10 years.
Associated Press story about a report by the Society of Actuaries claims that whereas some states will see medical claims costs per person decline under Obamacare, the overwhelming majority will see double-digit increases in their individual health insurance markets, where people purchase coverage directly from insurers. The administration questions the design of the study, saying it ignored cost relief strategies in the law such as tax credits to help people afford premiums and special payments to insurers who attract an outsize share of the sick. The study also doesn’t take into account the potential price-cutting effect of competition in new state insurance markets that will go live on Oct. 1, 2014, administration officials said.
A major question is whether people eligible to buy health insurance under ObamaCare will be willing to do so. A new study from payroll provider ADP reveals that workers drop off employer plans when their premium costs begin to take up more than 3 percent of their income. This starts to happen with individuals making less than $40,000 a year and gets more pronounced as wages decrease.
The Obama administration will require health insurance companies to report all price increases, even small ones, to the federal government so officials can monitor the new “ObamaCare” health care law’s impact and insurers’ compliance with it.
Anti-Obamacare House Republicans publicized a tweet from Democratic political strategist Donna Brazile reading: “What’s on your menu? Just got off the phone with my health care provider asking them to explain why my premium jumped up. No good answer!” The House Ways and Means Committee sent out an email with the tweet under the subject line: “Q: Why are your health insurance premiums higher? A: Obamacare”