Americans choosing not to purchase Obamacare exchange plans

On Fox News Sunday, Brit Hume talked about how the majority of the new enrollees are signing up for Medicaid, not Obamacare, and how young people are refusing to sign up for Obamacare plans on the exchanges.

And more discussion from the same panel:

For those who can’t watch, here’s an article from Fox News about how the majority of new enrollees are choosing Medicaid, not Obamacare plans.


While virtually all the ObamaCare focus is trained on the program’s dysfunctional website, another problem could be emerging — in states where individuals are able to sign up, far more are enrolling in Medicaid than private plans.

For now, the statistics are spotty. The Obama administration still hasn’t provided figures on how many people have successfully enrolled through the federally run exchanges. Some, but not all, states have provided their own relatively up-to-date figures.

But for those that have, the lopsided numbers show Medicaid is getting the lion’s share of enrollees.

In Washington state, more than 35,000 people have signed up for coverage since Oct. 1. Of them, just 4,500 went into private plans. Roughly 31,000 signed up for Medicaid — with coverage kicking in sometime between now and Jan. 1.

The director of the state’s Health Care Authority said they were “pleased by the strong response of Medicaid-eligible residents.”

But the imbalance — if it does not even out in the months to come — could create problems for private insurance companies which are relying on a major influx of new and healthy customers to make the system hum.

“There are a lot of elements of this law that have to work, that must work — otherwise the whole thing collapses,” the Cato Institute’s Michael Cannon said. “They need — need — lots of healthy people to sign up for insurance through the exchanges.”

The fact that people are flocking to Medicaid isn’t necessarily a problem — but a lack of healthy enrollees on private plans would be.

The main reason the Affordable Care Act mandated that individuals buy insurance was so that private insurers would get enough young, healthy people in the system who could offset the costs of covering older and sicker patients. Otherwise, at the very least, costs will skyrocket for those in the system.

[…]The Democrat and Chronicle newspaper reports that in New York, nearly 24,000 of the 37,000 newly enrolled residents are going into Medicaid, which millions of New Yorkers are already on. Just 13,313 chose private plans.

Medicaid is fully taxpayer-funded, so this is not going to help the deficit/debt situation at all. That money will have to be borrowed and paid back by taxpayers. Making things worse is the fact that young people are not signing up to purchase the overpriced health insurance plans on Obamacare exchanges.


As Nick Gillespie and Veronique de Rugy have pointed out for Reason magazine, the concept of today’s older generation as impoverished is simply wrong. In fact, today’s seniors are far wealthier than today’s young adults.

Looking at rates of homeownership, 83% of elderly households own a home. Meanwhile, 36% of millennials are still living under their parents’ roof. Those over 65 years of age have much lower poverty rates than most other demographic groups. Households headed by people 65 or older have 22 times the wealth of households headed by people under 35.

Not only are many young people either unemployed or underemployed, the Consumer Financial Protection Bureau estimates that people under 40 owe 67% of the roughly $1.4 trillion that Americans owe on school loans. That’s on top of an average of several thousand dollars of credit card debt.

ObamaCare forces people who can scarcely afford the extra cost to subsidize care for people who absolutely can afford to pay for their own health services.

In the exchanges, a young person will have to pay an estimated $250 per month for basic insurance. Again, this cost is so high because these premiums are expected to pay for older people’s healthcare costs. These costs now include covering a plethora of expensive drugs, services and procedures thanks to ObamaCare’s requirements for insurance plans.

Buying plans on insurance exchanges costs money, and many young people don’t have any money to spend these days. Young people have not done particularly well at finding jobs lately, especially since they have acquired precious few marketable skills in the public schools. (Most people can’t get a job calling people racist and sexist and homophobic, because there are only so many journalism jobs to go around).

So what Obama has really done is promised lots of goodies to all of his supporters, but there is no one signing on to pay for it. And that’s what I would expect from someone with no marketable degrees or skills who has very very limited experience working in the private sector. Many of the people in the Obama administration just haven’t done anything productive in the private sector, and that lack of experience is now showing. We have elected a government that believes in making policy based on feelings, not facts.

2 thoughts on “Americans choosing not to purchase Obamacare exchange plans”

  1. This is going EXACTLY the way the Communists planned it. The goal was single payer all along. The fact that no one is signing up for the private insurance plans is perfect for the Commie-in-Chief, as the insurance companies will soon collapse. He may pretend to look worried, but he is laughing all the way to the Politburo. Let the death panels begin! Is there any mention of gulags in ObamaDoesntCare?

    BTW, “Most people can’t get a job calling people racist and sexist and homophobic, because there are only so many journalism jobs to go around” is absolutely classic! Please save this for the “Best of Wintery” edition – fantastic!


  2. The latest and best news is that NO ONE needs to sign up for any health insurance if they don’t want to. The Obama “care” penalty is toothless. Rush Limbaugh quoted the tax code Friday (I think it was) that the only way the IRS can penalize you if you are owed a refund. If you underpay your taxes, they can’t collect, and they can’t garnish your wages, and they can’t put a lien on your property. Set up your tax payments so you won’t get a refund. That’s the best way to protect yourself from this. The bad news is that even if no one signs up for Obama “Care” it has already ruined the insurance market and medical care for us. We’ll probably never be able to go back. God bless you. Susan Fox


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