It occurs to me that if the cost of being insured (as a 25 yr old) is going to be a minimum of $2200/year; and the penalty for no insurance is $750, we may not get the participation of these young, healthy people ... who are an essential element of providing coverage for pre-existing conditions, and other benefits required for Obamacare.
If you’re a 25 year old male non-smoker, buying insurance for yourself, the cheapest plan on Obamacare’s exchanges is the catastrophic plan, which costs an average of $184 a month. (By “average,” I mean the median monthly premium across California’s 19 insurance rating regions.)
The next cheapest plan, the “bronze” comprehensive plan, costs $205 a month. But in 2013, on eHealthInsurance.com (NASDAQ:EHTH), the median cost of the five cheapest plans was only $92.
In other words, for the typical 25-year-old male non-smoking Californian, Obamacare will drive premiums up by between 100 and 123 percent.