How Obamacare Will Hurt Young People – by Dick Morris

Teenage Problems, Social Issues and Bullying

A detailed analysis of the Obama health care program now before the Senate indicates that it will force big premium increases for all families, especially for those under 30 years of age.

The study, by the consulting firm of Oliver Wyman, concludes that premiums for individuals will rise by $1,576 and $3,341 for families by under the bill. Young people will be hit the hardest. The study predicted that premiums for new health insurance policies purchased by the youngest third of the population would rise by 35 percent under the bill.

These increases will stem from the bill’s provisions that bar insurance companies from raising rates on sick people and from excluding people based on pre-existing conditions. Both of these mandates will mean higher costs for the younger and healthier population. This bill is, in effect, a tax on the young.

Nor will subsidies do much to mitigate the impact. To get a subsidy under the bill, you have to earn less than about $80,000 a year (combined household income) and have spent between 2 percent and 10 percent of your income on premiums.

So a couple making a combined income of $40,000 would have to pay about 5 percent of their income, $2,000, before they could get subsidies. Those making $60,000 would have to pay about 8 percent of their income — $4,800 – before they could get a subsidy.

And those making $80,000 would have to chip in 10 percent of their income — $8,000 — before they would get a subsidy.

These are hefty bills for young families to bear.

So most won’t do it. The fine for failing to have health insurance is only $750. So most young people will just pay the fine and be done with it. When they get sick, they’ll get covered and the insurance company can’t charge them a higher premium than it would have charged when they were healthy. And it can’t turn them away.

So this bill is not a measure for full national health insurance coverage. At best, it’s a bill that will insure you when you are sick and make the rest of us pay the bill. And, in the meantime, you’ll have to chip in $750 a year for the privilege.

Employers, too, will find it much cheaper to pay the $750 per employee than to buy insurance.

Ironically, there is a good chance that this bill will actually increase the number of uninsured. Its ban on letting insurers raise rates on sick people will force premiums so high that many people will drop their insurance. After all, when they get sick, they can and will easily get their insurance back.

  • aarongantt21

    Somebody mentioned Currently, a 60-year-old likely would pay five or six times more for private medical insurance than someone in his twenties but it may not be true always check for lower price coverages

  • jackbelias

    This whole thing is a sham. Democrats want the big business PAC money and their vote. Nobody but employers win as they can now stop offering benefits to workers, and will now be free of problems generated by injured illegals seeking the benefits of workmans comp.

    I couldnt help but notice the cllaimed number of “Americans” without health coverage. At least 3/4ths of the stated number have to be illegals. This means breaking our laws means free health care while employers will have a larger number of cheap workers to hire over “greedy” American workers. They will have bigger power cruisers, and more private jets. The rest of us will have a reduced standard of living while the democrats lead a continued charge to reduce it even more.

  • Robert Bernier

    Wow! Read this one. It is really good. And this gentleman says it just like it is.

    This venerable and much honored WW II vet is well known in Hawaii
    for his seventy-plus years of service to patriotic organizations and causes all over the country. A humble man without a political bone in his body, he has never spoken out before about a government official, until now. He dictated this letter to a friend, signed it and mailed it to the president. Consult :

  • JMO

    I hope all the people who voted for this bill (libtards) meaning those who voted in their senators and congresspersons and those who voted for the Liar-in-Chief get what they deserve. Change. The only change you are going to have along with the rest of America is the change you have in your pockets. That is, if there is any change left.

  • harley55

    You are absolutely correct. We will pay more taxes than Canadians which is around 50-55% just to cover illegals.

    It is time we do something in this country to stop this nonsense.

    Maybe we should give up our legal status and become an illegal?

    Concerned American

  • bushlikesdick12

    For now you can stop slamming Obamacare because by now it should be quite clear that it is going to pass the senate and thus become law the first of the year.

    So get use to the fact that the average citizen will probably have affordable medical now.

    As soon as it becomes law, children with pre-existing conditions can not be refused insurance.

    So start working on some other crap till the presidential election starts picking up some steam

  • winoceros

    The logical extension is that the employer will give the $750 to the employee, or whatever the taxable equivalent is.

  • winoceros

    Seriously. I can just fail to provide documents that prove my citizenship! I'll go to the “free clinics” and get my labor under the table, untaxed. Perfect.
    I even speak Spanish…

  • abrahamstubenhaus

    Dear Mr. Dick Morris,
    Thank you as always. I respect y7our insight and intelligence highly.
    Please help publicize the names of all those (Republican or Democrat) who voted for Obamacare. We the public have made clearly known that we are against this new way to hurt our youth, besides the already huge burden of debt that has been laid upon them by Mr. Obama's other lavish and careless spending.
    Please get those names out. I'll tell you why.
    We hear so many different names each day and we see so many faces and names on TV, it is someimes difficult to remember which ones are for sanity and which are for Obamacare.
    Thank you for all your successful and wise efforts on behalf of the American public!!!

  • danacain

    LOL “affordable insurance”….that's hilarious….I plan to drop my insurance and pay the fine so you will have to pick up the extra cost. If I ever get sick I won't have to worried about being denied coverage. It's going to be great….I'll just let you pay my portion until I need it okay? You don't mind do you?

  • MarilynA

    This doesn't surprise me. the Medicare Part D Prescription Drug plan has resulted in my being taxed $26 per month payable to AARP's drug company, which is the cheapest plan available. For years I have purchased drugs from a reputable online foreign drugstore, located through, for less than the Medicare copay for an office visit. Once you know what maintenance drugs you need it shouldn't be necessary to pay doctors for repeat prescriptions. Since the Part D up front deductible is more than I expect to pay for emergency drugs, this $26 per month is just money paid for nothing. My husband, who has a drug plan through his reitrement benefits, recently was charged over $600 for a one month's supply of a new drug. His co pay on this drug was over $100. Since his drug plan stops paying after $2,500 , this means he will be able to get 5 months of drugs before he has to pay the entire costs. Some help that government plan is. My foreign drug store has not acquired this new drug yet, but as soon as they do, we won't be using his drug plan either.The moral is: When the government get involved, costs skyrocket. And we ain't getting nothing from the government for free. We always end up paying more so government officials can give the same thing to their free loading supporters for nothing.

  • coyote3

    Where to start? This is just another civil rights violation. Congress has no authority to do any of this stuff, and this is just another bigger and grander exercise of illegal power.

    There is one thing that is a little different. It may not be much consolation, if we suffer under this thing, but this was strictly a partisan effort. That is just a fact. Now, in the past, at least some Rethuglicans would get in on the act as well, so we had bipartisan civil rights violators. The “current” crop of Democrats own this one if it passes. When it goes south, and it already has started to do so, they will try to deflect the blame, but they will own the damage done. They will own it in fee simple

    The American people have, for a long time, forfeited their right to a government which has powers limited by the constitution. This is not surprising. After years and years of the government exercising powers it does not have, we now have the “mother” of all civil rights violations.

  • coyote3

    Young people are not the only ones who will be hurt by the “mother” of all civil rights violations. However, although I will certainly suffer, I can't really get warm and fuzzy about the American people right now. This confirms that they have long ago forfeited their right to a government limited by the constitution. They deserve as bad as this gets, and worse. Although it should still be opposed, if it passes, keep in mind that sometimes the worse thing you can do to someone is give them what they want. I recall, years ago, when our agency passed some really silly “rules”. These rules didn't come from Los Fresnos, but from DC, where they didn't know the difference between a Mexican and Tejano. Well, we enforced those rules, to the letter and to the exteme, i.e., to point of obvious obsurdity. The first ones to complain about it were the boys in DC. We merely replied, “Heh, these are your rules not ours.”

  • coyote3

    Even if this thing passes, it is probably a little early to get specific about what we need to do to screw it up. However, you probably want to keep your proposal in the back of your mind, and put away a little, if you can, to pay that fine. Again, it is a little early, but right now a lot of employers are paying more than the proposed fine in coverage. To me, dumping the employee health insurance, under those circumstances would be an easy call.

  • LindaRivera

    The government live in a different world than the rest of us. Whilst we worry about survival, they don't have to worry about anything. Every day government is in session, it's scary. More spending, more money printing, more taxes, more borrowing, more debt. How can they do this to us?

    Our health system isn't perfect, but it is certainly not the nightmare that is planned for us. Read the following article by John Whitehead and the medical treatment Congress receives.

    Why Your Representatives Should Make You Mad as Hell
    John W. Whitehead

    Imagine a world exempt from parking tickets, where gym membership is free and health care is second-to-none. In order to receive these benefits, you also only have to work two, maybe three days a week—a time period during which you will be shuttled around in a nice car. The other days of the week you can spend at home with your family. Luckily, every weekend is a long weekend and you won’t have to be back at work until Tuesday evening.

    This job description might seem too good to be true, but for our so-called “representatives” in Congress who enjoy incredible job perks ranging from free meals to membership in swank health clubs, all at taxpayer expense, it seems that there is such a thing as a free lunch—literally and figuratively!

    Congressional salaries are certainly generous enough, with members of Congress receiving $174,000 a year on average, and people in leadership positions making more. However, for many Congressmen who belong to the so-called “Millionaire’s Club,” this is negligible in comparison to their net worth. (Senator John Kerry (D-MA), who heads up the club, has a net worth of $167.8 million, while Senator Herb Kohl (D-WI), at the lower end of the spectrum, boasts a net worth of $5.6 million dollars.)

    Incredibly, American taxpayers are underwriting lavish perks for these very same millionaires, as well as their congressional cohorts. The perks being enjoyed by those in Congress have provided comic relief for many a talk-show host, but contrast these perks with the plight of the average taxpayer struggling just to make ends meet, and you’ll find this is no laughing matter.

    For example, while veterans were being forced to suffer poor service and deplorable conditions at Walter Reed Army Hospital, politicians were being whisked up to Ward 72 at the very same hospital via a “golden elevator,” where they can enjoy medical treatment surrounded by chandeliers, fine china and original artwork. Should members of Congress or their staff not be able to make the trip to Ward 72, a private, on-call doctor is also on hand at the Capitol. Furthermore, while 47 million Americans struggle without any kind of health insurance, those in Congress receive superb, discounted health coverage which cannot be denied them because of their age or a preexisting condition.

    On top of their six-figure salaries and the millions in taxpayer dollars spent to maintain offices in their home state and in the nation’s capital, Congress also enjoys other benefits such as free life insurance, a generous retirement plan for life, 32 fully reimbursed road trips home a year, and travel to foreign lands. Then there are the “extras,” including discounts in Capitol Hill tax-free shops and restaurants, free reserved parking at Washington National Airport, use of the House gym or Senate baths for $100 a year, free fresh-cut flowers from the Botanic Gardens, and free assistance in the preparation of income taxes.

    Unfortunately, there’s more. While more than 15 million Americans are currently out of work and the rest of the nation is laboring longer hours for less pay, Congress enjoys a three-day, Tuesday-to-Thursday work week. Believe it or not, since returning to session, the only time the House of Representatives has actually voted on a Friday was when they approved a 5.8 percent increase in their own budget.

    Then there’s the way Congress manages the nation’s checkbook, running up deficits and spending outlandish sums of money on pork barrel projects. If you or I were to manage our finances this way, we’d quickly find ourselves out on the streets.

    As for abuses of office, they run the gamut from neglecting their constituencies to engaging in self-serving practices, including the misuse of eminent domain, earmarking hundreds of millions of dollars in federal contracting in return for personal gain and campaign contributions, having inappropriate ties to lobbyist groups and incorrectly or incompletely disclosing financial information.

    Pork barrel spending, hastily passed legislation, partisan bickering, a skewed work ethic, graft and moral turpitude have all contributed to the public’s increasing dissatisfaction with congressional leadership. Thus, it is little wonder that a recent CNN poll shows Congress with a 29 percent approval rating. You’d be hard-pressed to find employees with such dismal performance evaluations getting a pay raise of any kind. Conveniently, Congress doesn’t have to worry about that since they voted in 1989 to give themselves an automatic raise every year.

    Congress should be America’s representative body, yet too many of its members bear little resemblance to those they have been elected to represent. Many of our politicians live like kings. Chauffeured around in limousines, flying in private jets and eating gourmet meals, all paid for by the American taxpayer, they are far removed from those they represent. Such a luxurious lifestyle makes it difficult to identify with the “little guy”—the roofers, plumbers and blue-collar workers who live from paycheck to paycheck and keep the country running with their hard-earned dollars and the sweat of their brows.

    Does this make you mad as hell? It should. There is no reason why the American people should be taking this kind of abuse from people who supposedly are representing them.

    The average American understandably feels helpless and disconnected, yet whose fault is it really? As the old maxim goes, people get the government they deserve. For too long, Americans have failed to hold their elected representatives accountable. Thus, the onus is on us, “we the people.”

    Let this be the starting point for you to turn the television sets off and do something about these problems. Whether or not you agree with their politics, the Tea Party Protesters have set a good example for what needs to be done. Get involved. Get organized. Find out who your representatives are. Contact their offices. Review their records. Keep track of what they’re doing and how they’re voting. Make your voices heard to the representatives who are doing a poor job of representing you, and if they don’t listen, take action and remove them from office.

  • bushlikesdick12

    First of all, how do you know it is a violation when we are still ironing out the details?

    O that is right— any sort of govt. is a violation of the constitution.

  • bushlikesdick12

    You mean danacain doesn't pay taxes?

    Why don't you give me your SS# or tax i.d # so that I can report you to the IRS along with the rest of the Republican criminals you hang out with?

    Also, your fine will equall the administrative cost of dealing with you along with your share of the cost for us to maintain such a plan.

    Who do you suppose pays for that nice Honda motorcycle that cops rides on when he pulls you over for not paying attention while listening to fat Limbaugh?

  • bushlikesdick12

    You got the part about it be a little too early to make any sort of judgement regarding this plan.

    I'm not an advocate of a sort but can see through the right wing propoganda — simply saying, the article is a bunch of garbage without a single tread of substance. — And I didn't even bother to read because that is how much confidence I have in FPM's job.

  • CowboyUp

    Dream on, most people are happy with their health care and most people are against socialized medicine (obamacare). Get used to being pounded on it, congressional elections are next year, and the dp is going dead against the wishes of a solid majority of the people. Add to that the first dp tax increases hit next year, energy price increases because of dp energy policy (ask jimmy carter how conserving to prosperity worked out), the latest spending orgy (4X Bush with a GOP Congress, and most of it on obvious bs), the scr*wing the dp and aarp are giving old folks, and dp problems come much sooner than '12.

    '12 is three years off, and by then hussein's policies will have taken their natural effect. See jimmy carter.

  • coyote3

    Well, when it has no authority to do what it is doing, that is a pretty good clue. If I don't have the authority to do something, and I do it anyway it's called illegal. What I meant about waiting reffered to the action necessary to scew it up, if enacted

  • Len Powder

    Phone calls, faxes, emails, townhall meetings, protests, tea parties – none of these have worked. The time has come to resist, like Ghandi resisted the British, like our founding fathers resisted the King & Parliament, like the Iranian students are resisting the Ayattolah, like Dr. King resisted segregation. The time for complaining and wringing our hands is over. This tyranny of law must be resisted even if we must risk going to jail. The surrender in the face of this blatant authoritarianism is to waste the lives of all those that died since the American Revolution to oppose precisely what we confront today. Think of Hitler, of Lenin, of Mao for Obama and his Obamacrats belong to the same pantheon of miscreants and demagogues.

  • joelsk44039

    Wrong on a number of accounts. The full implementation of the “new and improved” medical delivery system doesn't take place until 2014. During the transition, uninsured children (and adults) will likely not be able to find insurance that accepts all risks (such as a pre-existing condition).

    There will always be HMO's that, by law, must accept all applicants during “open enrollment” periods, but whose pricing may be unaffordable. Health insurance premiums will not be subsidized until 2014 and under the Senate plan, these subsidies won't kick in until the family has spent somewhere between 4% and 10% of its income on medical insurance. For a family of 4 with an income of $80.000, the subsidy doesn't even begin until $8,000 has been spent. That's a LOT of money the family will have to come up with first before the government offers any help.

    Also, some 14 Million children without health coverage currently are eligible for SCHIP or Medicaid, but their parents haven't applied.

  • Len Powder

    Well said Joel. The subsidies will be reserved primarily for the “poor” – i.e., Democratic constituents. Liberals think the Democrats are 'compassionate'. Nothing could be further from the truth. It's amazing anyone is gullible enough to swallow their garbage. Whatever they do is to remain in power and to enrich themselves. The facts are easily available to anyone open-minded enough to see. Liberals are so preoccupied with hating America that they don't have a chance to see the obvious truths in front of their noses.