Despite ongoing efforts by the Obama Administration and its supporters to sell ObamaCare to a skeptical American public, a new study from the National Center for Public Policy Research finds that young people will see no financial benefit from the law’s insurance exchanges.
The centerpiece of the ObamaCare is the state insurance exchanges, through which uninsured Americans can purchase coverage from any one of four different plans, the cheapest of which is the Bronze plan.
But even with subsidies provided by the law, many Americans between the ages of 18 and 34 will be $500 richer if they don’t buy health insurance, according to the study, Why the ‘Young Invincibles’ Won’t Participate in the ObamaCare Exchanges and Why It Matters.
“Over 3.7 million individuals will pay at least $595 out-of-pocket for a Bronze plan, meaning that they will save at least $500 if they decline insurance and pay the fine,” noted Dr. David Hogberg, the author of the study. “About 3 million individuals will save at least $1,000 if they go the same route.”
“Also noteworthy is that a large portion of the total number of single people without children ages 18-34 have a substantial financial incentive not to participate next year,” he added. “Sixty-one percent will have at least $500 worth of incentive to avoid the exchange, and 49 percent will have at least $1,000 worth.”
But here’s how it is in real world terms.
“At $23,831 annual income, that 25-year-old will save $1,000 by just paying the one percent fine,” wrote Hogberg. “That’s a savings of about $83 a month that can purchase a month’s worth of groceries for a single person at a grocery store such as Aldi.”