Welcome to the Real World: Grim Prospects for Young Adults under Obamacare
Josh Archambault /
As the Obama Administration’s allies are gearing up to spend $125 million over the next five years to sell the health overhaul law to the public, including seniors, there has been a noticeable vacuum in the discussion over the impact on younger adults. This topic was in the spotlight at a recent event sponsored by the CATO Institute: “How Will Obamacare Affect Young Adults?”
While the President received one of the largest margins of support from 18-29 year old voters during the 2008 election, there is growing skepticism over the President’s handling of health care and the final version of the bill signed into law. Under the overhaul, Michael Cannon, Director of Health Policy Studies at the Cato Institute, says that flawed policies are used to fix other flawed policies. For example, for price controls to work, an individual mandate is required; but for a mandate to work, more taxpayer subsidies are necessary. But what happens when the central planners’ calibrations are off? Younger and poorer adults who stay in the health insurance market will be cross-subsidizing the premiums of older and wealthier Americans not yet eligible for Medicare. From the “have nots” to the “haves”—a new social policy. (more…)