The Effects Of Obamacare

by Vince

I have heard from some people close to me that their health care rates have gone up since Obama passed his health care bill. I don’t know for sure if those two are correlated directly. What I have seen is the rise in young Americans being covered by insurance, which ultimately can help bring down costs:

The provision of the law that permits young adults under 26, long the largest uninsured demographic in the country, to remain on their parents’ health insurance program resulted in at least 600,000 newly insured Americans during the first quarter of 2011.

[…]

Because the under 26 crowd tends not to get sick, adding them to the insurance pools helps bring the very balance that was intended by the new law. The more healthy people available to pay for those in the pool who are ill (translation- the older people), the better the system works and the lower our premium charges should go.

One cannot help but notice that the health insurance companies turned in record profits for the first quarter of 2011 due, according the insurance companies, to fewer people seeking medical treatment.

When you add into their customer base a large number of people who are paying premiums but are less likely to get sick (the young adult demographic), this would be the expected result.

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