• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar

Galen Institute

  • Home
  • About Us
    • Mission and History
    • Grace-Marie Turner bio
    • Who was Galen?
  • Activities
    • Core Activities
    • Commentary and Oped Tutorial
    • Our Book
    • Galen Guides
  • Contact Us
  • Major Papers
  • Broadcast Interviews
  • Health Policy Consensus Group

David Hogberg: Why The “Young Invincibles” Won’t Participate In The ObamaCare Exchanges and Why It Matters

POSTED BY Grace-Marie Turner on August 15, 2013.

If the ObamaCare health insurance exchanges are to function properly, it is crucial that a substantial number of people ages 18-34 join them. This age group that is young and relatively healthy must purchase health insurance on the exchanges in order to “cross-subsidize” people who are older and sicker. Without the young and healthy, the exchanges will enter a “death spiral” where only the older and sicker participate and price of insurance premiums will increase precipitously.

This study finds that in 2014 many single people aged 18-34 who do not have children will have a substantial financial incentive to forego insurance on the exchanges and instead pay the individual mandate penalty of $95 or one percent of income. About 3.7 million of those ages 18-34 will be at least $500 better off if they forgo insurance and pay the penalty. More than 3 million will be $1,000 better off if they go the same route. This raises the likelihood that an insufficient number of young and healthy people will participate in the exchanges, thereby leading to a death spiral.

Continue Reading…

Filed Under: Uncategorized

Primary Sidebar

The Laffer Curve

Our Annual Report

Health Care Choices 20/20:

A Vision for the Future

SEARCH

Subscribe to our Newsletter

* = required field
unsubscribe from list
(After subscribing, you will receive a confirmation email which is frequently found in the junk mail folder.)

LATEST NEWSLETTER ISSUES

Social Media

Like Us On Facebook

Twitter: @galeninstitute

 

Copyright Galen Institute at Donors. © 2023; · Log in