Will a young, healthy, childless individual or couple buy health insurance costing 7.5 percent of their income as required by Obama's health legislation? Not until they get sick. Then, they can always buy the insurance -- and the Obama bill requires the insurance companies to give it to them. And, if the premiums come to more than 7.5 percent of their income because they are now sick, no problem. Obama will subsidize it.
Instead, young, healthy, childless people will likely opt to
pay the $1,000 fine (a.k.a., slap on the wrist) mandated in the bill. After
all, even if they make as little as $50,000 a year, the fine is a lot
cheaper than 7.5 percent of their income (or $3,500 a year)!
So ... these young households will not contribute to the
coffers of any health insurance company until they are sick and need the
coverage. By then, their costs will come to vastly more than their premiums.
Who will subsidize the difference? We will.
 The insurance industry estimates that the bill will drive up
premiums for the average family by $1,700 a year. By the time the bill takes
effect in 2013, it estimates that the average annual family health insurance
premiums (now $12,300) will rise to $17,200 if the Obama bill is passed, but
only to $15,500 if it is defeated.
And who do you think the voters will blame for the hike in
their premium? The Democrats who passed the bill.
Supporters of the bill are quick to counter that greater
efficiency, etc. will hold down premiums. But they have little to answer the
argument that, without higher fines, the young and healthy will not consent
to pay an arm and a leg for insurance they don't need.
Any lingering motivation to pay the premiums will disappear
once the Obama bill requires insurance companies to cover them when they do,
finally, limp in the door, desperately in need of insurance. Why pay now
when you can always pay later? And, with a government subsidy, you gain
nothing by paying for all those years when you don't need insurance.
So Obama's program turns out not to be one to spread insurance
and thus spread the risk of costly illness, but one to make people pay 7.5
percent of their incomes once they get sick, with the government picking up
their remaining premium and the health insurance customers paying for the
medical expenses. Some deal!
So tote up the cost of this bill on the middle class:
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