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How Obamacare Affects Students: What You Need to Know

There are endless ways Obamacare affects college students, as it does everyone else. I’m just going to talk about a couple that affect college age students specifically. Many college students will be dropped altogether from their parents’ health insurance plans because employers don’t want to be pay for their employee’s dependents for an extra seven years, now that they can stay on until they are 26. Another way that college students will be affected is that their premiums will go up due to a provision in Obamacare that says that a senior citizen’s premium can’t be more than two and a half times a young person’s. Essentially, the youth of the nation will be footing the healthcare bill of the senior population since senior citizens use health care so much more than young people.

For a more detailed explanation….

College students are being led to think that Obamacare is a good thing, especially for them. They are, however, being very mislead and manipulated about that fact. The provisions of Obamacare that are supposed to be the “good ones” for college age students have been unveiled before the election, while the bad ones will start next year. This makes for much more favorable voting for Obama. I will discuss a “good” provision that is already in effect and a lesser known and less favorable provision that goes into effect in 2014, after the election.

One of the main “good” provisions that college students hear about is that they can stay on their parents’ insurance plan until they are 26. Although sold as a good thing, a provision that will expand care for people 26 and under, the actual truth of the matter is a bit different. If you get married, you get kicked off the plan, which discourages young adults from getting married, getting a job, and getting their own benefits. That is just a “soft” issue, however.

This biggest issue with this provision is that employers on average pay about 75% of an employee’s premium and a certain percentage for their employee’s spouse and children. Before, when you were enrolled in college full-time, you were allowed to stay on your parents’ plan until you were 23 because you were really still a dependent. If you weren’t a full-time student, you were dropped off your parents’ plan at 19. Now suddenly with Obamacare there are seven more years you can stay on your parents’ plan, without even being in college. This provision kicked in during January 2011. January is the time employers renew their healthcare plans. When the provision kicked in, they were told it wasn’t going to increase costs very much. As 2011 passed by, however, many “children” who had been kicked off their parents’ plan years ago “jumped” back on. Therefore, employers have been and continue to see their costs rise. Starting this past January 2012 many employers have been deciding to no longer pay for their employees’ dependents. This, in turn, has led to many people dropping their children off their plans. This trend has just begun, and we usually see trends reported about a year late. It was sold as a good benefit, but it has raised employer costs too much, causing dependents to be dropped altogether.

As far as premiums go, there is a difference between a 24 year old’s premium and a 64 year old’s premium of about eight times because young people use less benefits. So if the 24 year old is paying $50, the 64 year old is paying about $400. A provision in Obamacare now says the difference between them can only be two and a half times, as opposed to eight times. They, of course, are not going to bring down the 64 year old’s premium, so they’ll raise the 24 year old’s premium instead. Therefore this provision will cause premiums to rise. Essentially, the youth of the nation will be footing the healthcare bill of the senior population since senior citizens use health care so much more than young people. This provision, which the government knew would be viewed negatively, doesn’t kick in until 2014, after the election.

What healthcare needs is less government intervention, not more. We need to allow the free market to do what it does best.



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