Distrust “News,” and Check Its Sources — Or Invite Being Deceived

Here is a scary headline from a news-aggregator, tracked back to its linked-to news report, and finally to the original data, which show the very opposite of what that scary headline says (and important facts that were omitted from the published article will be shown here in [brackets]):


Obama White House Continues to Swindle Young People Through “Affordable” Care Acttownhall.com (1 day ago) Mar 29, 2014

During an appearance on The Tonight Show with Jimmy Fallon last month, First Lady Michelle Obama called young people [who don’t sign up] “knuckleheads”… full story



[townhall.com was founded by the Republican Party’s Heritage Foundation]

Obama White House Continues to Swindle Young People Through “Affordable” Care Act

Katie Pavlich | Mar 28, 2014

During an appearance on The Tonight Show with Jimmy Fallon last month, First Lady Michelle Obama called young people “knuckleheads” for refusing to sign up for Obamacare. As the data and numbers on Obamacare continue to be analyzed, especially for young people, it appears the real knuckleheads are those who think millenials can actually afford health insurance under the “Affordable” Care Act.

Forbes Contributor Scott Gottlieb is out with a piece today [no link provided here] detailing the cost of Obamacare health plans for young people making between $25,000 and $45,000 per year. The prices are astounding.

My AEI colleague Kelly Funderburk and I looked at four states: Arizona, Illinois, Pennsylvania, and Texas. We then looked at a typical 30-year old at one of six different annual income brackets: $20,000 in annual income, $25K, $30K, $35K, $40K, and $45K. For each of the four states, we computed how much an Aetna Classic Silver plan would cost the same 30 year old at each of these six income bands. We looked at monthly premiums, deductibles, and out of pocket limits. We chose the Aetna plan because it operated across all of these markets, and represented a median price point among the silver plans.

Look at our numbers (laid out in the charts below) and you’ll see why so many Millennials have Obamacare sticker shock. Someone, for example, earning $25K annually in Arizona will pay $2,424 in total monthly premiums for Obamacare (10% of their annual income) and still be stuck with a $4,000 deductible and a $5,200 cap on their out of pocket costs. The same person in Illinois will pay $3,576 in annual premiums, and in low cost Texas $2,460.

What about the same 30 year old who now earns $30,000 annually – the average salary for a pre-school teacher according to census data? In Arizona, their annual cost for carrying the Obamacare plan runs $2,772 and their deductible is $5,000. In Illinois, the same person will spend $4,092 for the same health plan, and also have a $5,000 deductible before their full health coverage kicks in.

Before Obamacare passed in 2010, young people were able to obtain private health insurance plans for less than $100 per month with a $1000 deductible. I know because after college I signed up for a plan covering what I needed for just $80 per month before gaining insurance through my employer. Those days of affordability are long gone.

It’s time for young people to take a second step back and ask themselves if they feel insulted yet by the Obama administration’s expectations that their generation pay for one of the biggest expansions of government in American history. Are these kinds of costs really worth it so long as the President is funny during an In Between Two Ferns appearance? Are these costs really worth it so long as multi-millionaires like Lebron James tell you they are? Hardly.

Keep working young people (that is of course if you can find a job, Obamacare is forcing employers to cut workers and hours after all), Barack Obama is depending on you.


[The link was not provided, because the owner of the Town Hall website didn’t want readers to be able easily to access the data-source to check whether it supported or contradicted what Town Hall’s writer was alleging about it, but here is that link:]



credit: American Enterprise Institute

In other words: If your annual income is $25,000, you pay slightly less than 10% of that for coverage that will cap your out-of-pocket medical expenses (the top source of personal bankruptcies) at $5,200, or slightly more than 20% of your annual income. You won’t need to go bankrupt or homeless if you get a disease or crash your car but survive, or if some other tragedy destroys your health.

If your annual income is $45,000, you’ll pay 6% of your annual income for insurance that will cap your out-of-pocket medical expenses at $6,350, or slightly more than 14% of your annual income.

Unlike before Obamacare, the insurance company will not be able to rescind (cancel) your policy if and when you get a long-term illness.

So, Obamacare has offered, for the first time, health coverage that is non-cancellable and that guarantees that your medical expenses will not, even under the worst circumstances, exceed 20% of your annual income, and it will cost you no more than 10% of your annual income.

No wonder, then, why Michelle Obama said that only a “knucklehead” would turn it down.


Investigative historian Eric Zuesse is the author, most recently, of They’re Not Even Close: The Democratic vs. Republican Economic Records, 1910-2010and of  CHRIST’S VENTRILOQUISTS: The Event that Created Christianity.

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