I Bet He Voted for Obama

The federal health care law could nearly triple premiums for some young and healthy men, according to a forthcoming survey of insurers that singles out a group that might become a major public opinion battleground in the Obamacare wars. The survey, fielded by the conservative American Action Forum and made available to POLITICO, found that if the law’s insurance rules were in force, the premium for a relatively bare-bones policy for a 27-year-old male nonsmoker on the individual market would be nearly 190 percent higher.

Politico. Full study here.

Comments (8)

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  1. Jordan says:

    This study was stunning. The whole thing was worth reading.

  2. Andrew O says:

    It’s scary what can happen under the new law. While I agree that everyone ought to be insured,it comes down to individuals to seek that insurance and providing alternative, low-cost premiums, for low-income patients. I am still not convinced, however, that I have seen a realistic proposal to have an affordable health care system out there that ensures all Americans can have some form of health insurance available to them. Honestly, the system we currently have is often inhumane and there are several atrocious stories about people having their lives ruined because of incomprehensible medical costs.

  3. Sadat says:

    Great, the very people who utilize health insurance the least have to pay a higher burden for the more unhealthy individuals. At one level, I understand that this is how risk pool economics function, but still, it seems to penalize a segment of the population who work to be healthy.

  4. Charlie says:

    “the premium for a relatively bare-bones policy for a 27-year-old male nonsmoker on the individual market would be nearly 190 percent higher.”

    This is very encouraging to hear… Not!

  5. Don Levit says:

    John:
    Thanks so much for posting this interesting analysis.
    Do you know how Douglas came to the various higher percentages for younger and healthier people?
    Did he use the services of an actuarial frm?
    It is interesting to note the largest increase is in the modified communitry rating of 3 to 1.
    At this point, our design assumes full community rating.
    This provides larger reserves in the beginning, so that benefits are more able to be paid.
    It also provides significant discounts for older and sicker participants, which is “compassionate” justice.
    As one reaches a higher paid-up level due to the lack of high claims, at a 300 per month contribution, premiums are reduced 60-80 over 36 to 50 months.
    Now, that’s a health and wellness program with some teeth in it.
    Don Levit

  6. Don Levit says:

    Corrections:
    $300 a month contributions reduces premiums 60-80%.
    Don Levit

  7. H. James Prince says:

    If I’m going to get charged like an overweight smoker, might as well enjoy it.

    And here I thought all those kids saying “yolo” was stupid. We are charging people to be healthy.

    Bloody brilliant. This will certainly make Americans healthier.

  8. Devon Herrick says:

    If you were to conduct a poll of young voters and ask them… “do you believe insurers should be allowed to charge sick people more just because they are sick?” Most young people would say “no”. Yet, if you were to ask young voters if they were willing to pay $1224 more per year in return for older people getting a bargain, most would have said no.
    If you were to offer young people a choice of two identical insurance products and explain one cost $54 per month, while the other was $156 per month ($1224 higher), all would choose the cheaper plan.