subject: Do Young Adults Feel Betrayed By Obama Over Healthcare Reform? [print this page] The majority of young adults voted for Barack Obama in the 2008 presidential election. In fact, the 18-24 demographic made up the biggest slice of now-President Obama's supporters. Is the controversy over health insurance reform causing them to regret their decision? Healthcare reform was one of the pillars of his campaign platform, but he initially endorsed an approach closer to that proposed by liberal single-payer advocates.
A recent nonpartisan analysis by Rand Health has found that the legislation recently passed by Democrats may result in young adults' health insurance being 17% more expensive. Other estimates predict that the increase will be over 50%. The bulk of increased costs will occur after 2014, when the bulk of the bill takes effect. It will prevent people with pre-existing conditions from being denied coverage. Unfortunately, the bill is a Faustian bargain: it includes a mandate for everyone to buy insurance. If they do not, they will be subject to a fine.
Young adults are the largest percentage of the uninsured in the United States. Some are without insurance voluntarily, and this group is the thorn in the side of health insurers. The business model of health insurance companies is based on younger, healthier people paying into the system while paying out relatively few claims for the older, unhealthier people. If the risk pool's balance is off, insurers must either charge more or refuse some potential customers.
That is where the individual mandate comes into play. There are accompanying subsidies intended to be used in regulated exchange markets (not factored into the study), which will help with the cost. However, the cost will be an average of $42 more each month.
Some Millennials are indeed feeling abandoned. With a record-high unemployment rate--even more severe in this age group--they are little able to afford health insurance as is. Many more are either underemployed, or working in positions without health benefits. As a result, they must buy individual health insurance. The possibility that a bill purported to help them may end up adding to their struggles hurts even more.
In general, young adults are of two minds. Many are understandably resentful of having to pay higher health insurance rates in order to cover older adults in worse health. New limits on age rating mean that insurers can only charge a 50-year-old 300% more for a policy than a 20 year old in similar health, whereas the previous law allowed them to charge up to six or seven times more. Unlike older Americans, young adults did not have their own centralized lobbying group to push their issues during the debate.
Despite those concerns, others are expressing more progressive and generous views. According to some polls, they are willing to pay slightly more for health insurance plans now because they realize they will eventually be older and benefit from these policies.
