BlackFlag10
College Conservative
- Jun 1, 2012
- 121
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Originally meant to expand coverage, Obamacare will do exactly the opposite. Consumers act rationally under economic principles. Here is what will happen:
Read the full article at Cameron Harris: Obamacare vs. Economic Principles ---The Young Won't Buy Healthcare
asically, the idea is that the young must purchase healthcare in the government pool, and because they will not be in need of much healthcare, the costs for older Americans decrease. As Holtz-Eakin puts it, "In effect, young Americans are supposed to be both key participants and the piggy banks of the expansion effort."
What Obama, Pelosi, and Democrats have failed to account for is that consumers will approach healthcare in the exchanges just as they would with any other product.
When you are standing in the grocery store trying to decide which cereal to buy, you first go for your preference, and then you look at the price. There is a certain price at which you decide that Captain Crunch isn't worth it, and you settle for the generic store brand.
The same will happen with younger Americans. Lacking healthcare issues and the need for immediate insurance, there will be a price point at which Americans will decide that they are better off paying the penalty instead of purchasing healthcare. Later on, if they are in a dire situation, they will purchase healthcare as needed. Empirical data provides evidence for this claim.
The American Action Forum sponsored a national poll of Americans aged 18 to 40 in March and April of this year. They were specifically interested in what effects various premium increased would have on a consumer's willingness to purchase healthcare coverage. Respondents were those who already purchase insurance and were supplied with specific information regarding the various scenarios covered in the poll.
Read the full article at Cameron Harris: Obamacare vs. Economic Principles ---The Young Won't Buy Healthcare