Millions of Young Americans Will Do Better By Defying Obamacare and Paying the Fine

Cheaper than paying for what they don't need


Washington, D.C.—The ObamaCare exchanges are headed for serious problems as millions of young people have a substantial incentive to avoid buying insurance, says a just-released study, "Why the 'Young Invincibles' Won't Participate in the ObamaCare Exchanges and Why It Matters," by David Hogberg, Ph.D., senior fellow for health care policy at the National Center for Public Policy Research.

"Millions of single, childless adults will save at least $500 by forgoing insurance and paying the fine in 2014," said Hogberg. "The problem is that to be viable the exchanges need these 'young invincibles' to participate."

The study finds that about 6 million 'young invincibles'—those aged 18-34 who are single and childless—will likely be eligible for the exchanges. For 3.7 million of these individuals, their out-of-pocket premium costs for a Bronze plan, after their exchange subsidies are factored in, will be $500 plus the cost of the individual mandate fine. For just over 3 million, the out-of-pocket costs will be $1,000 plus the fine.

This will give millions an incentive to merely pay the fine in 2014—$95 or 1% of income, whichever is higher—and pocket the rest.