Obamacare, also known as the Affordable Care Act, was signed into law in March 2010. On a surface level, its promise to provide health care to millions of uninsured Americans only sounds like a boon. While certain high-income individuals, businesses and the healthcare sector were negatively affected by the law, those under 35 years of age were also specifically affected. Three reasons why:
1. Young people get sick less often. Under Obamacare, young adults can stay on their parents’ plan until they’re 26 years old. However, many young people tend to be healthy and do not need the protection that older Americans need. Because insurance companies are required to cover sick people, insurance costs increase for young, healthy adults.
2. Layoffs. According to one part of the law, ie employer mandate, businesses with more than 50 full-time employees need to provide health coverage, or pay a monthly tax fee. The annual fee is $2,000 or $3,000 per employee, depending on the circumstances.
As a result, some businesses are slashing employee hours. On Investors.com, record cuts include pay cuts for student employees at Penn State University, Pennsylvania full-time workers at David’s Bridal, New Jersey College Hunks movers, Hollywood Casino NJ, and several school districts, just to name a few. If you are relying on that full-time job to pay the bills, just hope your employer is not swayed.
In 2016, businesses need to provide 95% of their full-time workers with insurance, if they’ve more than 100 full-time workers.
3. Deadlines. Under individual mandateYou should have obtained health cover by January 2014. If you miss the deadline, you are expected to receive liberation or start paying tax penalties for each month you haven’t got insurance.
In 2014, the fee to be uninsured is $95 per adult and $47.50 per child (up to $285 for a family) or 1% of your taxable income, whichever is bigger cost. In 2015, fees will escalate to a whopping $325 per adult or $162.50 per child (up to $975 per household), or 2% of your taxable income, whichever is bigger.
Finally, Obamacare allowed registration to be extended to May 1st2014 to avoid a financial penalty—but if you missed the May deadline, you’ll now must wait until November 15, 2014 and see if you can be covered for “eligible life events” by special registration.
Complicated, expensive, and hindering its original goal of providing health care to all citizens, Obamacare has several drawbacks for young Americans.
