Not Good for Young Americans

Universal health care is the nation’s newest entitlement. Given the unsustainable nature of our existing entitlement structure, and the $76 trillion in unfunded mandates that we must find a way to afford, is it smart to add another one? Regardless, this is the reality that we must face.

President Obama sold the nation on his new entitlement on the idea that it would actually reduce the deficit. Unfortunately, his estimates rely on unrealistic assumptions and budgetary gimmicks designed to hide the bill’s true cost. For instance, the program’s benefits are phased in so that the first 10 years of revenue are used to pay for only six years of spending. In addition, Obama’s bottom line fails to take into account the bill’s numerous “discretionary” spending programs that will costs hundreds of billions of dollars to implement. Removing these gimmicks we find that the reform legislation will cost closer to $2.5 trillion – an impossible burden for an already strained budget.

Of course, if we should learn anything from the explosive growth in Medicaid and Medicare costs, it is that we dramatically underestimate the cost of health programs. For instance, in 1967 it was estimated that Medicare would cost $12 billion by 1990.The trust cost? $98 billion – an 816% increase over the estimate.There is little reason to expect anything different today and the results could be disastrous on future deficits.

Future deficits are not the only way young adults are hurt by this program. The Democrats’ bill mandates that health insurance premiums for older Americans be no more than twice the level for younger Americans. But spending for those aged 60-64 is four to five times greater than those 18-24. In other words, young adults are being forced to overpay for insurance.

Obamacare is bad for the bottom line. Not only does it add another trillion entitlement to a cash strapped nation but it takes money directly out of the wallets of young adults.