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Obamacare Threatens Opportunity, Fosters Paternalism

Liberal Democrats and big government Republicans do no favors to anyone in America.  Let me rephrase that.  They do plenty of favors to their cronies and politically connected lobbyists, but the policies they promote diminish freedom, weaken the economy, undermine civil society, and trammel religious liberty.   But, with their policies and ideas, they do no favors to America as a whole, and Obamacare is no exception.

Liberals love to claim their policies strengthen the middle class and assist the poor, and they claim that Obamacare is doing just that.  It’s a message we’ve heard frequently from President Obama; during his 2012 campaign he talked about building the country from “the middle out.”

Sounds nice, eh?

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Doctor

Obamacare: Young People Get the Shaft, Low-Income Young People Get Medicaid

A recent study indicates that health insurance premiums could rise by as much as 40 percent as a result of President Obama’s healthcare law.  Young, healthy men would be the most negatively affected by this changed.

The Washington Examiner explains why Obamacare won’t become attractive to young people any time soon:

[T]he typical 26 year-old male with low medical expenses would have to decide next year whether he would rather pay roughly $1,700 (or more) extra for compliant health insurance as opposed to going uninsured. This is in addition to rent, food, student loan payments, credit card debt, transportation, entertainment expenses, and so on. And keep in mind, this is under the rosy scenario, as supporters of the law are holding up California as a model.   Some young Americans may decide to purchase the insurance under such circumstances. But will enough of them do so to make Obamacare functional? I remain skeptical.

Obamacare’s Medicaid expansion makes the picture even grimmer for young adults and especially low-income adults.

Heritage’s Ed Haislmaier explains that young adults in states that choose to adopt the Medicaid expansion could be trapped in low-wage and part-time jobs.  “The program creates perverse incentives that make it advantageous to have employees go into Medicaid – and stay there.”

What are these incentives?  Who would really want to sign up for a failed Medicaid program that doesn’t improve health outcomes? 

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The State Health Flexibility Act (H.R.4160)

Earlier this month, Congressmen Todd Rokita (R-IN) Tim Huelskamp (R-KS) and Paul Broun, M.D. (R-GA) introduced the State Health Flexibility Act (H.R.4160), which would streamline federal Medicaid and Children’s Health Insurance Program (CHIP) funding into a single block grant to the states, allowing them greater flexibility in providing care for their most vulnerable citizens. From the Republican Study Committee (RSC), this bill:

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