Opponents of Obamacare have been claiming that young people shouldn't buy health insurance on the new Health Insurance Marketplace, because it would be smarter to pay the fine. They're wrong. Why? Because math. And logic. And facts.
Here are just a few reasons why their claims don't make sense:
1) If you “opt out,” not only do you still have to spend money, you also don’t get health insurance!
Under Obamacare, also known as the Affordable Care Act, you essentially have two options:
Option 1: Spend money and get a thing
Option 2: Spend money and not get the thing
Yes, this system encourages people to get the thing, with the thing being health insurance coverage. Because health insurance is a good thing. And most people would choose to get something in return for spending their money.
Encouraging young, uninsured people to "opt out" of purchasing health coverage is saying yes, it is better for you to spend money on a fine and not get insurance.
As Stephen Colbert said, "It's like renting instead of buying and then not getting a place to live." Opting out sounds about as good of a deal as that arcade claw game.
2) Shit happens, medically speaking.
If you've ever been to the hospital in your entire life, you know 1) the waiting room is more depressing than any Parenthood episode and 2) it is EXPENSIVE. Like, a three-day hospital stay will cost you, on average, $30,000 kind of expensive. Thank you sir, may I have another? Sure, you may not end up in the hospital next year, but do you really want to take that chance? Considering that over half of uninsured young adults struggle with medical bills or debt, it's just not worth the risk.
Still thinking that you aren't that idiot and you won't use health insurance while you're young and beautiful? Consider this. If you haven't been using health care services, maybe you should be. Young and middle-aged men are actually the most likely to get testicular cancer. They are the family jewels—maybe you should get them checked by someone other than that person you met online.
3) Tax credits – they’re worth a lot.
Of course, traditional health insurance ain't cheap. Nowadays, landing a job with benefits straight out of high school or even college is about as rare as a beef Carpaccio. Thanks, Recession!
There is some good news for all those interns/fellows/part-time workers/"in-between jobs at the moment" folks out there. Depending on your income level, you could qualify for tax credits that apply immediately to the cost of a plan on the Health Insurance Marketplace. Think of it as a health insurance coupon. So you will pay the low-low price right away, and won't have to wait for a tax refund. You may also qualify for subsidies that lower the cost of your co-pay for services, such as office visits and prescriptions. Millions of low-income adults will also qualify for free coverage called Medicaid.
For example, a 22-year-old non-smoker with an $18,100 annual income living in Washington, DC can purchase a comprehensive plan on the Health Insurance Marketplace for $1,488. But, she will qualify for $1,379 in premium tax credits. Final yearly cost? $109. DEAL.
Also, $18K a year is higher than the average income for uninsured 22 year-old.
4) The penalty for not having insurance is more expensive than you think it is.
If you don't get health insurance, you will literally be paying something for nothing.
Let's break out the math. Using the above example of the 22-year-old woman whose yearly income is $18,000, she would pay about $180 to NOT have health insurance. Or she could pay $109 FOR a comprehensive health insurance plan on the Marketplace. Recap: $180 for nothing. $109 for health coverage. Math!
Wouldn't you rather spend money to gain something that will benefit you rather than spend money to not have anything?
5) You need health insurance in order to do a lot of important things.
Believe it or not, lacking health insurance can actually affect your future career plans. Many colleges require you to have health insurance, even if you take as few as 9 hours a semester. Want to take a few courses to get ahead at work? If you don't have health insurance, you may not be able to.
Let's say you're one of the 54% of young adults who has or would like to start your own business. You've got a totally ingenious idea like the Snuggie or Pajama Jeans or another product that capitalizes on the idea that we really only ever want to wear blankets. Afraid to strike out on your own because you'll lose your health insurance? That, my friend, is called "job lock." Roughly 1 in 16 people currently insured by their employers won't start the next Great American Business for fear of losing their health coverage. Now you can hit up the Health Insurance Marketplace, whether or not you make it on Sharktank. And no, Mark Cuban is never going to throw in a health plan with his offer.
Most importantly, health insurance is required by some recreational sport leagues, because playing semi-competitive kickball/basketball/flag football/flip cup/beer pong without health coverage is not the best idea you've ever had.
Math. Facts. Logic. Flip cup.
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