It seems that every month or so, another bit of information comes out to show the failure of Obamacare to achieve its goals. Today's subject are student health insurance extension policies available for college graduates.
For many years, many colleges and universities have had health insurance plans for their students. Because the students are a young and healthy group, the premiums for these policies have always been quite low. In addition, the student insurance policies had no medical prescreening, so even students with health pre-existing conditions were able to get low cost insurance. Obamacare has already driven up the cost of the student health insurance in dramatic fashion. For example, the cost of premiums nearly doubled at the University of Connecticut from two years ago to the past year.
The health insurance companies offering these policies at the colleges also had extension policies. These were health plans for recent graduates that were available for one or two years after graduation. The premiums were extremely low for the extensions, because, once again, the group covered was young and healthy. These policies were a godsend for young graduates who were in jobs that provided no insurance, who were unemployed, or who went into business for themselves. They allowed these people to have good health insurance at low cost.
Obamacare has killed these extension policies. They died this year. At some schools, there are policies which are available until December, 31 of 2013, after which Obamacare blocks the policies. At most schools, however, nothing is being offered.
Now I know that some of you are thinking that the graduates can now stay on their parents health plans until they are 26, so it does not matter. That is totally wrong for a number of reasons. First, many of these students do not have parents who still have health plans. Second, the cost of adding a student to a parent's plan is, in general, much greater than the cost of these school extension plans. In some cases, the differential is 300%. This additional cost makes it much more likely that the graduates will just pay the fine for not having health insurance rather than paying for the high cost of the parents' plans.
It is true that there are undoubtedly graduates who can be added to the plans of their parents at no cost to them. For these people, the loss of the school extension plans is no big deal. This, however, is a small minority of students.
The net effect of this change wrought by Obamacare has not yet been tallied. It seems pretty clear that there will be a net reduction in the number of people with health insurance here, though. Once again, Obamacare is reducing coverage rather than expanding it. It is making health insurance more rather than less expensive. It is failing to perform as promised.
For many years, many colleges and universities have had health insurance plans for their students. Because the students are a young and healthy group, the premiums for these policies have always been quite low. In addition, the student insurance policies had no medical prescreening, so even students with health pre-existing conditions were able to get low cost insurance. Obamacare has already driven up the cost of the student health insurance in dramatic fashion. For example, the cost of premiums nearly doubled at the University of Connecticut from two years ago to the past year.
The health insurance companies offering these policies at the colleges also had extension policies. These were health plans for recent graduates that were available for one or two years after graduation. The premiums were extremely low for the extensions, because, once again, the group covered was young and healthy. These policies were a godsend for young graduates who were in jobs that provided no insurance, who were unemployed, or who went into business for themselves. They allowed these people to have good health insurance at low cost.
Obamacare has killed these extension policies. They died this year. At some schools, there are policies which are available until December, 31 of 2013, after which Obamacare blocks the policies. At most schools, however, nothing is being offered.
Now I know that some of you are thinking that the graduates can now stay on their parents health plans until they are 26, so it does not matter. That is totally wrong for a number of reasons. First, many of these students do not have parents who still have health plans. Second, the cost of adding a student to a parent's plan is, in general, much greater than the cost of these school extension plans. In some cases, the differential is 300%. This additional cost makes it much more likely that the graduates will just pay the fine for not having health insurance rather than paying for the high cost of the parents' plans.
It is true that there are undoubtedly graduates who can be added to the plans of their parents at no cost to them. For these people, the loss of the school extension plans is no big deal. This, however, is a small minority of students.
The net effect of this change wrought by Obamacare has not yet been tallied. It seems pretty clear that there will be a net reduction in the number of people with health insurance here, though. Once again, Obamacare is reducing coverage rather than expanding it. It is making health insurance more rather than less expensive. It is failing to perform as promised.
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