Yeah, that’s not working out so well (via Hot Air)
(CNN)But a CNN analysis shows that in the largest city in nearly every state, many low-income younger Americans won’t get any subsidy at all. Administration officials said the reason so many Americans won’t receive a subsidy is that the cost of insurance is lower than the government initially expected. Subsidies are calculated using a complicated formula based on the cost of insurance premiums, which can vary drastically from state to state, and even county to county.
That doesn’t change the fact that in Chicago, a 27-year old will receive no subsidy to help offset premiums of more than $165 a month if he makes more than $27,400 a year.
In Portland, Oregon, subsidies for individuals making just $28,725 a year phase out for those younger than 35 years old.
Quite a few of these young healthies who are depended on, well, forced or pay a fine/tax, to sign up with Obamacare will be exactly within the range of being below the 400% of poverty line as they start their careers. Obviously, not all will be dependent upon the Exchanges, as they will be provided with insurance through their companies. Of course, once the employer mandate kicks in, all bets are off.
Here’s Ed Morrissey at Hot Air
The trigger on this is the premium price for a qualifying “bronze†plan in the exchange for the consumer. If the premium does not go over a certain percentage of income, then the formula produces a zero for the calculated subsidy. The problem for these consumers is that the baseline plans still cost more than their previous options, and have large deductibles to boot. That sets the incentives for younger consumers to bail out of the system, paying the fine and only signing up for insurance after a catastrophic event, which they cannot be denied under the new law.
Go that? It’s so simple, right? Health insurance was already complicated as it was, this makes it even more complicated as the Helpful Hand Of Government becomes involved.
Newsalert writes
ObamaCare needs 38% of the pool to be young. Who knew that federal tax credits aren’t uniform but based on where someone lives! Justice Roberts and Strongman Obama sure did re-write the U.S. Constitution. Goodbye 14th Amendment.
Instead of making insurance, it has become a rigamarole of government beauracracy and variable standards.
