Sunday, August 18, 2013

Report: Millions Have Incentive to Avoid Obamacare Exchanges, Pay Penalty

Structure of financial incentives could result in rising premiums, insurance death spiral

Millions of young people could save hundreds of dollars a year by avoiding Obamacare’s insurance exchanges and paying the penalty, a new report examining the law’s financial incentives finds.

About 3.7 million people between the 18 and 34 years old will save at least over $500 next year if they do not buy health insurance through the exchanges, according to the study by National Center for Public Policy Research health care policy analyst David Hogberg. Of those, just over 3 million will save over $1,000 per year.

While the law has put in place two primary incentives to encourage people to buy insurance—subsidies and the individual mandate—these are not enough to make the subsidies economically worthwhile for many young people, Hogberg contends.


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