A little known provision of ObamaCare could potentially financially wreck the system. According to insurance insiders, if enough young adults avoid the new insurance marketplace, it could throw off the entire equilibrium of the Affordable Care act. Young folks, not on their parents insurance or making too much to qualify for medicaid, are required to buy health insurance or be fined under ObamaCare. The idea is that by forcing young healthy people into the “risk pool” you balance out the higher utilization by old fogies like me. Can you say, redistribution? The irony of this is it is taking bucks from those just starting out to supplement us aging, decrepit, sick folks, who often times can afford it.
Wow, the young liberals who fled to the Obama camp in 2008 and 2012 may have to rethink all this. I mean, it was okay to redistribute the wealth when it flowed from the older successful people but they may sing a different tune when they have to shell out their paychecks even though they may have not been to a doctor for years. It’s really a matter of economics (isn’t everything). The average 26 year old can expect to pay $3000 a year in health insurance premiums under ObamaCare, whereas the “fine” for not purchasing insurance is a whopping $100. Granted this increases over the years, but it never comes close to premium amounts. So given that most 20-30 year olds feel they are invincible, what is the likelihood they will run out and spend beer and chips money on health insurance. I think I can make an educated guess, a lot fewer than the delusional health wonks in Washington think. This is simply another example of how many “what ifs” make up the ObamaCare fantasy.
Speaking of penalties, we heard the other day that the administration has rolled back the date for instituting the “tax” on businesses with more than 50 workers who don’t provide insurance for their employees. As Gomer Pyle used to say, Surprise, Surprise, Surprise! Maybe they figured out that businesses on the bubble, either right at 50 employes or close to it have either stopped hiring or shifted formerly full time employees to part time to avoid the penalties. Did they really not see this coming? Are they so captive in their ivory tower confusion to think that companies wouldn’t react this way? The moment the IRS comes out with new taxes, there is a swarm of consultants, lawyers, and associated evil doers figuring their way around them. The same thing is happening here. Consultants are making a good living coaching businesses on how to “adapt” (i.e. avoid) many of the oppressive new regulations. The authors of ObamaCare either were so deluded about the real world or the laws were so nebulous and uninterpretable that they never anticipated the work arounds.
The bottom line is once again the law of unintended consequences rules
supreme and ObamaCare will set new records for unintended
consequences.
