Sunday, April 1, 2012

Supreme Court Oral Argument Show How Obamacare Hurts Young People

Oral argument in the Supreme Court case regarding Obamacare shows why the program is harmful to young people.  If the federal government was making retirees pay $5,000 a year for insurance coverage that could be purchased on the open market for $854 a year, you better believe that the politicians in Washington would be hearing about it.  Why is it OK for the government to shaft your generation to pay for entitlements for oldsters? 

JUSTICE ALITO: But isn't that a very small part of what the mandate is doing? You can correct me if these figures are wrong, but it appears to me that the CBO has estimated that the average premium for a single insurance policy in the non-group market would be roughly $5,800 in — in 2016.
Respondents — the economists have supported — the Respondents estimate that a young, healthy individual targeted by the mandate on average consumes about $854 in health services each year. So the mandate is forcing these people to provide a huge subsidy to the insurance companies for other purposes that the act wishes to serve, but isn't — if those figures are right, isn't it the case that what this mandate is really doing is not requiring the people who are subject to it to pay for the services that they are going to consume? It is requiring them to subsidize services that will be received by somebody else.
GENERAL VERRILLI: No, I think that — I do think that's what the Respondents argue. It's just not right. I think it — it really gets to a fundamental problem with their argument.
JUSTICE GINSBURG: If you're going to have insurance, that's how insurance works.
GENERAL VERRILLI: A, it is how insurance works, but, B, the problem that they — that they are identifying is not that problem. The — the guaranteed issue and community rating reforms do not have the effect of forcing insurance companies to take on lots of additional people who they then can't afford to cover because they're — they tend to be the sick, and that is — in fact, the exact opposite is what happens here.
 

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