Archive for the ‘adult-children’ Category

“The under-26 provision is one of Obamacare’s biggest flaws”

March 23, 2017

Senator: “We didn’t think ahead” … and consider ramifications.

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From the get-go, I’ve questioned the “wildly popular” ObamaCare provision allowing “adult children” to say on their parents’ health insurance policies until they’re 26.

My objection was two-fold.

First, it removes a significant source of motivation for adult-children to get a job.

In the old days, parents encouraged their college kids to get a degree that might just qualify them for a paying job.

Unfocused, impractical exploration wasn’t a viable option for most families.

And, in the old days, parents used to nudge their kids to land jobs with benefits (not the same as “friends with benefits”) that included “hospitalization” … the old school name for health insurance.

I guess those days are gone …

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Second, as we’ve posted before, due to the weird insurance pricing schemes that let all except a family’s 1st child ride free on their parents plans, an adult-child rides completely free unless he-she is the family’s only covered child.

That means that all other plan members who pay premiums end up paying higher premiums to cover the cost of the free-riding adult-children

I don’t like these kinds of hidden cross-subsidies.

On this point, an insurance buddy of mine advised me to settle down since these adult-children are generally healthy and don’t consume much medical care.

True, but that raises an even biggest issue …

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