Obamacare will collapse under the weight of rising premiums
by: Ethan A. Huff
Wednesday, June 05, 2013
The scramble is on to bring the logistical framework for Obamacare into full fruition before its inaugural arrival in 2014. But as legislators and program architects dig down into the nitty-gritty of what the “tax” will actually entail in practicality, it is becoming abundantly clear from basic economics that the entire system will collapse before it even has a chance to get off the ground due to the extreme weight of rising premiums, which will hit young people the hardest.
As you are likely already aware, a major point of contention with Obamacare has long been the individual mandate, which basically requires all American taxpayers to purchase health insurance. The argument in defense of this mandate has maintained that adding millions of healthy young people onto the health insurance rolls will basically even out health insurance costs within the general insurance pool, and thus decrease costs for the people that need the most care.
But in reality, such a scenario will never actually occur. On the contrary, young people will most likely flee the system in droves once they realize that their insurance premiums are set to rise dramatically in response to Obamacare. As evidenced by a recent poll sponsored by the American Action Forum, nearly half of all people between the ages of 18 and 40 who currently have health insurance said they would flat out cancel their premiums in the event that said premiums rose by 30 percent.