Affordable Care Act Alternatives: Why Young People Ignore The Obamacare Tax
Obamacare alternatives are of the main reasons why the youth, defined as millennial’s in the age range of 18 to 35, are ignoring the Affordable Care Act tax.
In a related report by The Inquisitr, some Democrats have been shunning President Obama because of the 2014 mid-term elections looming over their heads and they don’t want to be associated with voting for Obamacare in areas where the Affordable Care Act is unpopular. There is also talk of Obamacare costing 2.5 million jobs, but what the CBO actually meant was the reduction in total work hours is the equivalent of 2.5 million jobs. The CBO claims the Affordable Care Act “creates an incentive for some people to work less” and thus there will be a “decline in the number of full-time-equivalent workers of about 2.0 million in 2017, rising to about 2.5 million in 2024.”
Obamcare enrollment numbers have failed to reach the required levels and instead have become a political football. The White House claims the numbers are in the millions but independent analysts say the number is closer to 600,000. In order for Obamacare exchanges to break even it’s estimated about 2.7 million American youths in the 18 to 35 age range must spend $5,800 a year per individual. But so far estimates from states show that young people only account for 20 to 25 percent of those enrolling via HealthCare.gov. This is why Obamacare marketing is targeting the youth, so that their payments can subsidize the higher medical costs of the middle-aged or seniors.
There are several reasons why the youth might be ignoring the Obamacare tax. The first reason is lack of knowledge on the subject. Most youth are aware of the Obamacare penalty but either think it’s going to stay at a measly $95 (by 2016 it’s $695 per year) or they’ve heard you can ignore the fine because the IRS can’t force you to pay. While that’s true for many in the middle class or the rich who pay Federal taxes each year, the IRS can collect the Obamacare fine via the income tax return. There’s also the fact that “forgoing Obamacare subsidies and returning to full time work with health benefits (for lower wage and middle class workers) amounts to an average, implicit tax of about 15 percent paid by each worker.”
Obamacare alternatives are another major reason why people are choosing to ignore standard health insurance options. For example, there are religious organizations that provide healthcare coverage for cheap. Besides alternatives, paying out-of-pocket for doctors visits may only cost $30 to $50 depending on the area you live in. I’ve heard people in my area having a broken arm and paying only $500 out-of-pocket. There are even specialty clinics that will MRI scans for only $300. But if you were to go to the hospital and use insurance they would charge thousands of dollars for the same services.
Still, this is a very good reason why the youth should opt for purchasing a catastrophic plan. If you were to get into an accident you’ll likely end up in the hospital and will be hit with a large bill (car accident insurance doesn’t necessarily cover all the medical costs). Unfortunately, even a more expensive Obamacare bronze or silver plan may not save you entirely. For example, just the other day I was just talking to a woman who needed back surgery for a disability and, while she wasn’t denied, the insurance required her to pay the deductible and co-payments up-front. This turned out to be $17,500 so now she’s stuck with a disability after years of paying for health insurance.
The last major reason is that many of the youth simply cannot afford anything beyond their basic payments and already are heavy in debt due to credit cards and college loans. Even if the minimum wage were $10 an hour that’s still only $1,600 a month before taxes. A subsidized Obamacare plan might be $100 per month but that’s still money the youth do not have and $695 is almost half of $1,200 per year.
