Obamacare is a Bad Deal For the Young: Cheaper to Be Uninsured, Study Shows

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Top Tier Gear USA


The success of Obamacare largely rests on the shoulders of the estimated 2.7 million “young invincibles” whose premiums are needed to subsidize healthcare costs for others. People in the 18 – 35 age group are needed to create a balanced risk pool.

Now a study shows that coverage through the ACA is just not a good deal for those young adults.

The study, conducted by The American Action Forum, concluded that for 86% of that demographic, ACA coverage is just not worth it:

The ACA’s perverse economic incentives are well documented. The law makes health insurance more expensive for many young adults, while at the same time making the decision to go without health coverage exponentially less risky than it previously was. It is impossible to predict how many young adults will ultimately enroll in coverage, but it is clear that many young adult enrollees will be worse off financially if they decide to purchase health insurance.

Health “care” coverage premium costs increased for both males and females in that age bracket:

A 30 year old male can expect premiums for his least costly insurance option to increase on average 260 percent in 2014,while a 30 year old female will see an average increase of 193 percent.

The study sought to find out whether enrolling in Obamacare or remaining uninsured was the most “financially advantageous” for the young invincibles.

Here’s what was discovered:

After accounting for subsidies and cost-sharing, 6 out of 7 uninsured, young adult households will find it financially advantageous to forgo health coverage, and instead pay the mandate penalty and cover their own health care costs. As the penalty increases, that number will drop from 86 percent in 2014 to 71 percent in 2015 and 62 percent in 2016, before ticking back up to 66 percent in 2019. In two additional analyses, using alternate assumptions explained in further detail below, the exact percentages vary, but the overall finding is constant; the majority of uninsured young adults will benefit financially from opting out of coverage in 2014.


The study concluded:

Even after the mandate penalty is fully implemented, a majority of young adult households will find that it is financially advantageous for them to forgo health insurance, pay the mandate penalty, and personally cover their own health care expenses. Even under our third, and most conservative, scenario we still find that in 2019, 41 percent of young adult households will be financially incentivized to forgo health insurance.

Through its insurance market reforms and overly prescriptive benefit design, the ACA makes the decision to purchase health insurance more costly than it previously was for the vast majority of young adults, while at the same time significantly reducing the risks associated with the decision to go without coverage. Whether young adults make the decision to purchase health insurance will depend on many factors, but the perverse economics of the ACA discourages young adults from joining the health insurance system.

The study’s co-author Chris Holt told The Daily Caller:

“We’re talking about a population of people who chose to go without insurance when it was much more dangerous to be without insurance and when insurance actually cost less. So the incentives have changed so that these folks now have less risk in remaining uninsured while the cost of getting insurance is even higher.”

Looks like the Obama administration wasted all that money they spent on the endearing Pajama Boy ads and those oh-so-clever racy ads featuring young folks talking about free birth control and boozing it up. Signing up for the Obamacare Ponzi scheme just isn’t worth it to them.

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  • LexiconD1

    Well, ‘No duh’.

    If they had bothered to read it, they would have figured that out for themselves…

  • Sonokar

    So, with the “Pre-existing Condition” clause it doesn’t make sense for anybody to have insurance until the day after they need it, right?

  • Hammerun

    If you remember in the beginning the Democrats compared buying the ACA to having to buying auto insurance. The problem that as unbelievably as it is that nobody had the fore site to see that you buy auto insurance for the right to operate an auto on American highways. You will buy their healthcare insurance for the right to be an American or you will pay a price.
    So they want to compare the two? OK. Let’s compare.
    Eventually it will get down to this, no matter what that idiot Pelosi says.
    Any time you use your auto ins. What happens? Your premiums go up. Right?
    Wouldn’t it be reasonable to think if you use your healthcare insurance, your premiums would rise as well?
    If you get a butttload of tickets or you participate in a risky behavior. (Smoking, overweight and the like) wouldn’t you think they or someone will raise your rates?
    What about when it gets to the point that there will be a determination if your injury or illness was due to risky behavior on your part and if your situation will be covered? Like, if you crashed your car after you were trying to drive like you were in a Fast and Furious movie and you got fucked up. Should we be responsible because you were an idiot. How about injuries from a skateboard, a bicycle, falling off of a mountain you were climbing because it was there? Should we be responsible for your stupidly?
    See where this might be going? You can bet they’ve seen it.
    If they can’t get you to change your risky behavior, they’ll force you to, that’s what they have in mind.
    I really like the piece that the Democrats are pulling with the youngsters. They need the young involved to pay for the old and sick. And the young are railing about this for the Democrats. Question, who paid their insurance for years before they were old enough to buy their own insurance?
    These pricks will slowly twist this back in on ALL of us young and old alike, this is just the beginning. Once they get their hooks set good and deep we’re all going to be fucked.
    These people that are running this thing are incompetent idiots being guided by someone with a grand plan. It’s going to be interesting to see what their plan will be with 315 million pissed off Americans and a few uncontrollable nut balls in the mix.

    • Hammerun

      You know something is rotten in Denmark here. The dollar numbers are so vast and convoluted nobody but the insurance companies can make heads or tails out of them.
      Case and point. Ive had health insurance most of my working life, right at 40 odd years. In November 1979 was the one time I was admitted into a hospital. I can on less than two hands count how many times I HAD to see a doctor.
      And yet I know and you do to know people that see a doctor on a monthly basis.
      How many people get the sniffles and have to go to the hospital.
      However though I got a shock back in November. I got a touch of vertigo and went down. Ordinarily I would have just toughed it thru but this was different, without going into details, we opted to get my ass to an ER at 1:30am.
      In four hours this what happened. First thing they wanted that Blue Shield card. They jammed a bag of saline in my right arm, pulled a blood panel out of my left arm, ran a EKG, and injected some meclizine (dizziness) and gave us two prescriptions. They demanded $850 before they would open the doors, then poured me back in the car. I was in no better condition than I was when I came in.
      The bill came out to $10,000. $2500 an hour, WTF????
      No diagnosis, I don’t know what the fuck they treated me for, but man they for sure came up with a bill real quick.
      What we found out in the end this little burg hospital (term used loosely) turned out to be nothing but an aid station with a heliport and a potential to crank out monster bills. What a scam!!!
      We found out that there are only a small number of doctors on staff, the rest are including RNs are contractors out of Las Vegas.
      The RN that’s was working on me was a Jamaican that we couldn’t understand. WTF??
      Now this is the funny part.
      Barbra the “quality coordinator” yuck yuck! Called us to see about our visit and something about the bill. I went the fuck off and connived an opinion about “MY” visit. The best she could come up with was a statement of “what could we do to inhance your experience and meet your expectations?
      She didn’t want to do anything like cutting $6K off of the bill. I told her it was difficult to see anything close to $4000 dollars of treatment, if that!
      I couldn’t figure out how to convene experiences that I had witnessed in the past like Salt Lake Uni Med center, Huntsman Cancer institute, Loma Linda Med center.
      I wanted to ask, in her opinion where she felt she and her and her AID station/heliport would fit into this lineup. I couldn’t pull the trigger cause I knew I couldn’t do it and keep my composer and not laugh at her. It’d been a good shot though.

  • Walter

    OK, but shouldn’t that be our choice? Someone asked me, “Do you have car insurance?” First, there’s no law (yet at least) that says I HAVE to buy a car. Second, Obamacare is like having to pay as much as full replacement Rolls Royce insurance on my moped, when they’ll only replace the moped (not hand me the excess) if it’s damaged.
    A better comparison is home insurance. Where I live in addition to fire insurance earthquake insurance makes sense. But I can pick and choose what to insure against. Obamacare is like forcing EVERYONE in the country, young and old, to pay to insurance their home (whether they own it or not) against: fire, flood, earthquake, hurricane, robbery, snowstorm, hail, termite, tsunami, renters, landlords, accidental death and dismemberment, liability, meteorite, volcano, tornado, lightning strike, etc, etc, etc…

  • Rick E.

    It may not be a new concept but this is the first time we are COERCED into buying health insurance or else a “fine”, tax, or whatever they call it this week!

    Young people still are NOT going to buy in simply because they don’t feel they need it. And barring catastrophe, they usually won’t need it.They’ll spend their money on fun things as most young folks do.

    So the next Obamacare fiasco will be you and I bailing out the insurance companies! And THAT will rise the anger of millions this time!
    This whole system will not be supported by older folks and those that use it frequently.

    This is quickly turning into a communist mess!

  • OldPoorRichard

    Well, duh. Life insurance is a real gyp too! Almost never get to “use” it, just money down a hole…. What part of “insurance” don’t people understand?