Study: ‘Obamacare’ Will Lead To Health Insurance ‘Death Spiral’
WASHINGTON (CBS DC) – A substantial number of young, single Americans have a solid financial incentive to forego the “Obamacare” health insurance exchanges – a trend that could send the federal health care program into a “death spiral.”
According to a new study from the National Center for Public Policy Research, a large number of single people between the ages 18-34 who do not have children have a substantial financial incentive not to “cross-subsidize” older, sicker Americans covered under the health care system. Without the younger generation purchasing through the exchanges, the exchanges will quickly dry up.
The study finds that in 2014, this young generation will have incentive to pay the individual mandate penalty of $95 – or one percent of income – because about 3.7 million of them will be nearly $500 better off to forego the exchange.
More than 3 million will be $1,000 better off if they go the same route.