Health Care bill coverage of young adults raises ObamaCare costs

Melensdad · May 10, 2010

More logical consequences that most people anticipated but the politicians lied about and said wouldn't happen.

New coverage for young adults will raise premiums
http://news.yahoo.com/s/ap/20100511...vajZzaTFyBHBvcwMxNQRzZWMDdG9wBHNsawNwcmludA--
By RICARDO ALONSO-ZALDIVAR, Associated Press Writer
26 mins ago

WASHINGTON – Letting young adults stay on their parents' health insurance until they turn 26 will nudge premiums nearly 1 percent higher for employer plans, the government said in an estimate released Monday.

The coverage requirement, effective starting later this year, is one of the most anticipated early benefits of President Barack Obama's new health care law. Many insurers have already started offering extended coverage to families who purchase their coverage directly. And employers say parents have flooded their benefits departments with questions. . .

The new benefit will cost $3,380 for each dependent . . .

Parents would face an estimated additional premium of $2,360 in 2011.

Enrollment as well as cost would increase modestly after 2011 for both employer and individual plans. Starting in 2014, the major changes of the new health care law go into effect. New competitive insurance markets would open for business, government tax credits would be available to help pay premiums, and insurers would no longer be allowed to deny coverage to those in poor health. Most Americans would be then required to carry health insurance.

JEV · May 10, 2010

I'm shocked!!!!!! The Insurance companies must be taking unfair advantage of their policy holders. Somebody call Nancy and Harry and the Kenyan to do something about this. This was NOT supposed to happen. The Kenyan told us we would be SAVING money, not spending more. This cannot be happening...something is drastically wrong here.

Disclaimer:
(The above statement was made with tongue firmly planted in cheek, and was intended to evoke emotion from my dissenters. Your mileage may vary. Void where prohibited. Past performance in no guarantee of future returns. You may lose your principle. Consult your party chairman before taking seriously, as this may lead to confusion, irrational thought and strong urges to attack the messenger and change the subject. George Bush cannot be blamed for this action as it was a purely democrat decision to deceive the public with inaccurate financial information. No Republicans were involved in this deception, and only the American people were sacrificed to the god of socialism to create this scam. Brush your teeth before going to bed and make sure to wear clean underwear when leaving the house. You'll wonder where the yellow went when you brush your teeth with Pepsodent. When buying underwear, look for the union label. Take as directed and do not exceed dosage without consulting your committeeman. Some exclusions apply. See store for details.)

RobsanX · May 10, 2010

Less than one percent huh? I can feel the walls crashing down as we speak!

Doc · May 11, 2010

RobsanX said:
Less than one percent huh? I can feel the walls crashing down as we speak!

From_Article said:
The new benefit will cost $3,380 for each dependent . . .

Parents would face an estimated additional premium of $2,360 in 2011.

Rob,
The point is we were lied to again. 2360 dollars per year, while not a fortune averages out to 196.67 more per month coming out of your take home pay. That ain't chicken feed my friend.

And yes this is for folks making less than 200k or 250k per household.
And if you think this is the only increase the middle class will see I have to suggest you are only fooling yourself. Most of the increase will not come until President Obama is out of office (assuming he is not reelected in 2012).

JEV · May 11, 2010

Doc, don't you know by now that Rob reads what he wants to read and disregards the rest? Facts only confuse him. He's very comfortable with generalities and holds hyperbole in high esteem. He is not adding an adult child to HIS policy, so it's only 1% that he sees.

RobsanX · May 11, 2010

Doc said:
Rob,
The point is we were lied to again. 2360 dollars per year, while not a fortune averages out to 196.67 more per month coming out of your take home pay. That ain't chicken feed my friend. And yes this is for folks making less than 200k or 250k per household.
And if you think this is the only increase the middle class will see I have to suggest you are only fooling yourself. Most of the increase will not come until President Obama is out of office (assuming he is not reelected in 2012).

I don't understand where the "lie" is? If you add dependents to a policy, it will cost more. It's always been that way. Nobody ever said the people wouldn't have to pay premiums.

As far as the less than 1% increase, I'd say that's a he'll of a lot better than the nearly 40% increase many people are facing.

Doc · May 11, 2010

I understood him to say if you make less than 200k or 250k per household your healthcare costs will not go up.
You are not 'adding' a dependent but extending their period of coverage.
I wonder if the parent(s) have an option to say no to this extended coverage? Maybe they prefer not to pay it, even though their child is eligible (living at home and meets all requirements). I do not think they will have an option ...but I"m not sure of that.

JEV · May 12, 2010

24 hours and no response from Rob. Your quote by the anointed one clinched it for you, so I guess this debate is over...Doc wins! :clap:

Melensdad · May 12, 2010

Doc said:
...You are not 'adding' a dependent but extending their period of coverage.
I wonder if the parent(s) have an option to say no to this extended coverage? Maybe they prefer not to pay it, even though their child is eligible (living at home and meets all requirements)...

I think another of the unintended consequences of this may be (not sure yet) but it may end up delaying the entry to adulthood and responsible citizenship by many young people who may take this to mean that they can still be children until the age of 26? We don't need to delay the entry to society of people who COULD be productive, we need productive people to enter society as early as possible and begin to contribute. This may have the social effect of delaying that process? Just a thought.

thcri · May 12, 2010

Melensdad said:
I think another of the unintended consequences of this may be (not sure yet) but it may end up delaying the entry to adulthood and responsible citizenship by many young people who may take this to mean that they can still be children until the age of 26?

I was at a seminar a couple of weeks ago for business insurance and that is very common for the Gen Y group to stay at home a lot longer than previous generations. In fact most of them leave and end up back at home within 6 years or graduation.

RobsanX · May 12, 2010

Melensdad said:
I think another of the unintended consequences of this may be (not sure yet) but it may end up delaying the entry to adulthood and responsible citizenship by many young people who may take this to mean that they can still be children until the age of 26? We don't need to delay the entry to society of people who COULD be productive, we need productive people to enter society as early as possible and begin to contribute. This may have the social effect of delaying that process? Just a thought.

Entry level positions often don't have good benefits. My first two jobs didn't include insurance coverage. I know it's hard to believe, but some employers still don't offer insurance. An adult child could be working, gaining experience, while still having the safety net of a health insurance policy. I don't see how this is a bad thing...

jimbo · May 12, 2010

RobsanX said:
Entry level positions often don't have good benefits. My first two jobs didn't include insurance coverage. I know it's hard to believe, but some employers still don't offer insurance. An adult child could be working, gaining experience, while still having the safety net of a health insurance policy. I don't see how this is a bad thing...

You are making assumptions which are not necessarily so. (1) You are entitled to health insurance. (2) Someone else should pay for it. Believe it or not, it is not the job of an employer or the government or someone else to provide for your health insurance.

There are other options available:

Acquire better skills so you are more desirable in the labor market
Pay for your own insurance
Do without
Join the military

Personally, I have no problem with kids staying on a parents insurance until 26 or 50 for that matter. Seems to me that it is just another small group policy. I do have a problem with the government mandating a market decision. As long as an insurance company and a purchaser have a meeting of the minds, so be it.

Melensdad · May 12, 2010

RobsanX said:
Entry level positions often don't have good benefits. My first two jobs didn't include insurance coverage. I know it's hard to believe, but some employers still don't offer insurance...

Not hard to believe at all, it is not the job of the employer to provide health insurance. If an employer chooses to do so they can, but that is entirely their option. The employers who provide it as part of a benefits package generally pay a lower wage. There is ONLY so much that an employer can pay in total compensation, split that pie however you want, doesn't really matter, its still only slicing the pie.

The fact is that now the government has changed the tax code to make it far less attractive for employers to pay for health insurance.

mak2 · May 12, 2010

I googled it but I cannot find anywhere with any data as to why the premiums raised. I did find a story that said the insurance companies were free to charge whatever they wanted, but were required to insure them. Again, we pay for them one way or the other.

Health Care bill coverage of young adults raises ObamaCare costs

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