Texans under thirty better brace for Obamacare sticker shock, 1200 WOAI news reports.
The prices which young people will have to pay for mandatory health insurance when those 'exchanges' become active next Tuesday are more than twice what a young person is paying now for health coverage.
A healthy 27 year old with no pre existing conditions will pay
$138 a month for coverage under the exchange. That is compared to today's free market price for the same health coverage for the same healthy 27 year old of $62.
"The scheme at the heart of Obamacare is that young, healthy people will subsidize health care for younger and sicker people," said John Davidson, a health care analyst at the Texas Public Policy Foundation.
Some young people will be eligible for subsidies based on income which will cut their out of pocket costs.
Davidson says the huge increase in the cost of health insurance for young people is one of the 'dirty little secrets' of the affordable care act.
He says if young people refuse to buy health insurance at the exchanges or obtain it through their work place, the entire system is not sustainable.
"It's going to trigger what we call an adverse selection spiral," he said. "If the risk pool doesn't have enough young healthy people in it, the claims costs will go up and up, and then the system collapses."
He points out that Obamacare prohibits the difference in costs between a young healthy 27 year old and a diabetic 62 year old cancer patient cannot be more than three times. That means young people will have to pay more because the costs of the older, sicker person cannot be raised.
Buying health insurance is mandatory under Obamacare, and individuals can be punsihed with fines or loss of tax refunds if they don't comply.