Health insurers fear young people will opt out

[OhioChick]

July 05, 2013 at 11:28 AM

MIAMI -- Dan Lopez rarely gets sick and hasn't been to a doctor in 10 years, so buying health insurance feels like a waste of money.

Even after the federal health overhaul takes full effect next year, the 24-year-old said he will probably decide to pay the $100 penalty for those who skirt the law's requirement that all Americans purchase coverage.

"I don't feel I should pay for something I don't use," said the Milwaukee resident, who makes about $48,000 a year working two part-time jobs.

Because he makes too much to qualify for government subsidies, Lopez would pay a premium of about $3,000 a year if he chose to buy health insurance.

More: http://www.cleveland.com/business/index.ssf/2013/07/health_insurers_fear_young_peo.html#incart_river_default

[Proud Liberal Dem]

1. Young people are notoriously short-sighted IMHO

They'll sing a different tune, however, if and when they get involved in an unexepected car wreck or find out they have a serious medical condition that they didn't anticipate. I was raised to believe that having some kind of health insurance was a responsible thing to do as part of self-care.

[Vietnameravet]

2. This is a very serious problem

If the young health opt out then only the older ones will stay..and since insurance companies have to cover everyone the premiums will rise..
The only penalty for not having health insurance is only a $100 fine per year so this might happen...

This is a real threat to the success of Obamacare and of course the GOP will do all they can to screw the program...

Okay if they want to opt out then fine but damn it if they need treatment we better damn well make sure they have their wages garnished or house attached for payment!
No more free rides for anyone that doesnt want to pay into the system..

[djean111]

13. That's the thing about Single Payer - it would just be deducted like Social Security.

Obamacare will never be "a success" because there are no price constraints that I can see, people can opt out, and millions will still not be covered. Obamacare needs to turn into single payer. As long as the insurance companies are siphoning off money and making deals with hospitals and pharma, there will be no "success".
Even the pre-existing pool was under-funded, I have read.
Get the insurance companies and employers out of health care.

[backwoodsbob]

21. you want to take peoples homes for not buying private insurance?

wow...never thought I would see capitalism taken to that extreme here

[dixiegrrrrl]

27. kinda re-defines the sense of "community", doesn't it?

Sheesh.

[KittyWampus]

29. From the start, wasn't it pretty well determined many young people wouldn't sign up

and would prefer to pay the fine?

Whatever it takes to tip the system into Medicare for all is what needs to happen. State-by-State.

[House of Roberts]

30. Apparently you'd prefer they get treated for free at the hospital then?

What part of 'if they need treatment' escaped you in Vietnameravet's comment? If they run up a bill and have the means to pay or assets to attach, the hospitals will go after them.

[Vietnameravet]

31. Thanks House... I was beginning to wonder if people here can read English!

I was clearly talking about a method to get them to pay if they need treatment...or at least thought I was clear..No more free riders who suck the system dry and then expect us to come to their aid..

[Vietnameravet]

38. Did you really read what i posted?

[KittyWampus]

28. Paying the penalty is paying into the system.

[Vietnameravet]

37. Not much..and i dont think they will enforce it

[winter is coming]

3. There are young people who can afford insurance? n/t

[Cal Carpenter]

4. Gee, ya know what could solve this problem?

Fucking single payer.

That's right, motherfucking single payer.

It could solve the problems with the businesses who don't want to insure their workers.

It could solve the problems with donut holes for prescription coverage.

It could solve the problems with the clusterfuck exchanges.

It could solve the problems with the half-assed subsidies (which subsidize *insurance companies* rather than *health care*).

Single payer now, the only option, yet it is never on the table in this so-called civilized country.

What a disgusting joke. All for corporate profits.

[spin]

15. + 1,000 (n/t)

[Vietnameravet]

34. Yes it could

Thats why Repubs will never vote for it..

[Catherina]

39. +1000000 n/t

[taught_me_patience]

5. I thought the penalty was 1%

of the difference in the tax threshold, which would be about $400 in this case. It also escalates to 2.5% quickly. He might forego insurance at $400/yr, but won't at $1000/yr.

[TheKentuckian]

8. The fine slides up with time until it reaches the full amount.

[kenny blankenship]

35. Income Tax compliance will fall precipitously as the fine increases.

And they will raise the fines, and wonder why revenues keep declining.

[silvershadow]

6. While worthy of discussion, also bear in mind that this is just the "other side of the coin" in the

conversation. This happens to be a story in the business section, so that's their audience. Could even be seen as a Chamber of Commerce "hit piece", depending on how far you care to muse. As was stated upthread, there are plenty of folks for whom the ACA is critical to their well-being. I am but one. Also, I always love how they pick out people making 48k and single. Those kinds of folks are a rarity these days, and becoming rarer. Recent posting here (last few days) showed the chart...wages going down, not up.

[taught_me_patience]

10. and part-time too!!

Just to make sure they aren't eligible for employer health care. Somehow "Dan" has found TWO part time jobs that pay over 20/hr (without overtime). I'd bet "Dan" doesn't even exist.

[silvershadow]

12. You're probably right. Just an example...from a PR firm or advertising firm or some such...nt

[taught_me_patience]

7. This article is complete bullshit on all levels

#1) A 24 year old who hasn't been to the doctor means he hasn't seen the doctor since he was 14!?!? Complete bull.
#2) A 24 year old working two part time jobs does not make $48k/year
#3) The fine is not 100/year for someone making "48k"
#4) The fine escalates dramatically over the next several years.

I'll bet that "Dan Lopez" is a "worst-case" fictional character that doesn't even exist.

[tritsofme]

9. The fine for being uninsured should roughly equal the yearly cost of premiums

on the most inexpensive policy in the exchange, the mandate needs more teeth. Otherwise you will start to run into free rider problems like this.

[leftstreet]

11. Maybe the INSURERS should match the penalty fee

Free Market, competition, blah blah blah, right?

[tritsofme]

14. Blah Blah indeed.

If you are trying to make a coherent point, I have no idea what it is.

[leftstreet]

16. You want harsher punishment for people who don't buy insurance

Why are you taking the for-profit insurance side?

[tritsofme]

18. If the youngest and healthiest are able to opt out of the system with little cost

The population left in the exchanges will be older and sicker, leading to higher premiums for all participants.

A mandate that truly encouraged participation would keep premium costs down for everyone.

[leftstreet]

20. LOL there shouldn't BE any premiums

Look, the insurers wanted this. They can deal with the fallout

If they can't compete with the cost of a penalty, too bad!

[tritsofme]

24. That is not our reality.

The fallout will be insurers raising premiums, the only victims will be consumers trying to obtain affordable coverage and taxpayers on the hook for higher subsidies.

[leftstreet]

25. "Our reality" is there are no jobs, and wages are shit

In the midst of a massive economic depression for the working classes the dumbass insurers FINALLY get their wish to profit off our backs. Oops, nobody's got any $!

Tough shit Big Insurers!

[Arugula Latte]

17. I guess a car accident scenario doesn't cross his mind?

But, yeah, this whole thing is ridiculous. We should have Medicare for all.

[frazzled]

19. Didn't happen in Massachusetts

where just 2% are uninsured.

[mick063]

22. Don't pin this shit on the young people

Health Care costs are out of control.

I'm not talking about the insurance. I'm talking about the cost of the care itself.

The outrageous cost of health care has a ripple effect so strong that it is better described as a tsunami effect. It leads to everything from jobs sent abroad to the practice of working folks 39 hours a week to avoid paying for it. Perhaps the single most crippling aspect of our economy.

[Deep13]

23. Isn't it mandatory. nt

[cbdo2007]

26. We need single payer - at least then he would be required to contribute more in taxes to pay for it.

[Quantess]

36. He's a fool to not have insurance, since he really should be able to afford it.

If he was making half as much, I would understand. And in fact, there are a ton of people making half as much or less, but the article doesn't address them.