{"id":979,"date":"2013-07-21T07:00:28","date_gmt":"2013-07-21T11:00:28","guid":{"rendered":"http:\/\/www.dougsbriefcase.com\/blog\/?p=979"},"modified":"2013-07-21T00:13:58","modified_gmt":"2013-07-21T04:13:58","slug":"what-will-the-poor-pay-for-obamacare","status":"publish","type":"post","link":"https:\/\/www.dougsbriefcase.com\/blog\/what-will-the-poor-pay-for-obamacare\/","title":{"rendered":"What Will The Poor Pay for Obamacare?"},"content":{"rendered":"

<\/p>

\"Credit<\/a>

Mil\u00adlions of unin\u00adsured Amer\u00adi\u00adcans with low incomes will find that cov\u00ader\u00adage under Oba\u00admacare isn\u2019t free. How they react to that brac\u00ading bit of news will help deter\u00admine whether the law suc\u00adceeds. [Cred\u00adit: Huff\u00adin\u00adg\u00adton Post]<\/p><\/div>Pres\u00adi\u00addent Oba\u00adma promised change.<\/span>  <\/span>Oba\u00admacare will bring it.<\/span><\/span>  <\/span>But one of its most far-reach\u00ading changes has noth\u00ading to do with health care.<\/span><\/span>  <\/span><\/span><\/span>\n

For the pro\u00adgram to suc\u00adceed, young peo\u00adple will have to pay unfair\u00adly high pre\u00admi\u00adums<\/a> for ben\u00ade\u00adfits they like\u00adly won\u2019t use <\/span>and low-income peo\u00adple will have to spend a good deal of their mea\u00adger earn\u00adings on health insurance.<\/span><\/span><\/p>\n

That marks a big depar\u00adture in the government\u2019s approach to social wel\u00adfare.<\/span>  <\/span><\/span><\/span><\/p>\n

Con\u00adsid\u00ader the fed\u00ader\u00adal income tax sys\u00adtem.<\/span>  <\/span>Repub\u00adli\u00adcans and Democ\u00adrats argue a good deal over the system\u2019s fair\u00adness.<\/span><\/span>  <\/span>Democ\u00adrats say that high\u00ader income peo\u00adple aren\u2019t pay\u00ading their fair share; Repub\u00adli\u00adcans want to cut everyone\u2019s rates, includ\u00ading those for top earn\u00aders.<\/span><\/span>  <\/span>Whether you think that high\u00ader income peo\u00adple pay too much or too lit\u00adtle, one point is inar\u00adguable: the bur\u00addens of financ\u00ading the fed\u00ader\u00adal gov\u00adern\u00adment fall large\u00adly on the top 50 per\u00adcent of taxpayers. <\/span><\/span><\/span><\/p>\n

The IRS<\/span> <\/span>ear\u00adli\u00ader this year report\u00aded that the gov\u00adern\u00adment col\u00adlect\u00aded near\u00adly $949 bil\u00adlion in income tax\u00ades in 2010 (Table 5, p. 57<\/a>).<\/span>  <\/span>Those pay\u00adments were not dis\u00adtrib\u00aduted even\u00adly among the 135 mil\u00adlion fil\u00aders (Table 5, p. 56).<\/span><\/span>  <\/span>The bulk of the col\u00adlec\u00adtions \u2014 $927 bil\u00adlion \u2013 came from just half of the fil\u00aders (Table 5, p. 57).<\/span><\/span>  <\/span>The bot\u00adtom half \u2013 over 67.5 mil\u00adlion house\u00adholds \u2013 pro\u00adduced just over $22 bil\u00adlion in tax\u00ades, an aver\u00adage of $331 per house\u00adhold, com\u00adpared with the aver\u00adage of $13,727 paid on aver\u00adage by house\u00adholds in the top half.<\/span><\/span>  <\/span><\/span><\/span><\/p>\n

The OECD<\/span> <\/span>has observed that the US<\/span> has the most pro\u00adgres\u00adsive direct tax sys\u00adtem<\/a> (includ\u00ading income and pay\u00adroll tax\u00ades) among devel\u00adoped coun\u00adtries.<\/span>  <\/span>Its bur\u00addens are dis\u00adpro\u00adpor\u00adtion\u00adate\u00adly shared.<\/span>  <\/span>We don\u2019t expect peo\u00adple with below-aver\u00adage incomes to bear much of the cost of gov\u00adern\u00adment or of the pro\u00adgrams from which they benefit.<\/span><\/span><\/span><\/p>\n

Oba\u00admacare will devi\u00adate from this famil\u00adiar pat\u00adtern by requir\u00ading house\u00adholds that pay lit\u00adtle or noth\u00ading in income tax\u00ades to pay a sig\u00adnif\u00adi\u00adcant share of their income for health cov\u00ader\u00adage.<\/span>  <\/span>These costs are often over\u00adlooked and sel\u00addom under\u00adstood.<\/span><\/span>  <\/span>I\u2019ll ignore Med\u00adic\u00adaid, since a num\u00adber of states have cho\u00adsen not to expand Med\u00adic\u00adaid cov\u00ader\u00adage.<\/span><\/span>  <\/span>Instead, I\u2019ll focus on sub\u00adsi\u00addized health cov\u00ader\u00adage avail\u00adable through the exchanges.<\/span><\/span>  <\/span><\/span><\/p>\n

Peo\u00adple with incomes between 100 per\u00adcent and 400 per\u00adcent of the fed\u00ader\u00adal pover\u00adty line will pay no more than a fixed per\u00adcent\u00adage of their incomes for health insur\u00adance cov\u00ader\u00adage.<\/span><\/span>  <\/span>The Pres\u00adi\u00addent often cites these sub\u00adsi\u00addies as mak\u00ading cov\u00ader\u00adage afford\u00adable.<\/span><\/span>  <\/span>They do reduce pre\u00admi\u00adums.<\/span><\/span>  <\/span>They also require peo\u00adple of mod\u00adest means to spend sig\u00adnif\u00adi\u00adcant shares of their own income on health insur\u00adance.<\/span><\/span>  <\/span>The table below sum\u00adma\u00adrizes what Oba\u00admacare will require house\u00adholds at var\u00adi\u00adous income lev\u00adels to pay for health cov\u00ader\u00adage [<\/span><\/span>1401(a) of PPACA<\/span><\/a>,<\/span> which cre\u00adat\u00aded IRC<\/span> 36B<\/span>(b)(3)]<\/span>: <\/span><\/p>\n\n\n\n\n\n\n\n\n\n\n\n
\n

Indi\u00advid\u00adual<\/span><\/strong><\/p>\n<\/td>\n

\n

 <\/span><\/strong><\/p>\n<\/td>\n

\n

Fam\u00adi\u00adly of 3<\/span><\/strong><\/p>\n<\/td>\n<\/tr>\n

\n

Income<\/strong><\/p>\n<\/td>\n

\n

Pre\u00admi\u00adum<\/strong><\/p>\n<\/td>\n

\n

Pct Income<\/strong><\/p>\n<\/td>\n

\n

 <\/span><\/strong><\/p>\n<\/td>\n

\n

Income<\/strong><\/p>\n<\/td>\n

\n

Pre\u00admi\u00adum<\/strong><\/p>\n<\/td>\n

\n

Pct Income<\/strong><\/p>\n<\/td>\n<\/tr>\n

\n

$11,490<\/p>\n<\/td>\n

\n

$230<\/p>\n<\/td>\n

\n

2.0%<\/p>\n<\/td>\n

 <\/span><\/td>\n\n

$19,530<\/p>\n<\/td>\n

\n

$391<\/p>\n<\/td>\n

\n

2.0%<\/p>\n<\/td>\n<\/tr>\n

\n

$15,282<\/p>\n<\/td>\n

\n

$458<\/p>\n<\/td>\n

\n

3.0%<\/p>\n<\/td>\n

 <\/span><\/td>\n\n

$25,975<\/p>\n<\/td>\n

\n

$779<\/p>\n<\/td>\n

\n

3.0%<\/p>\n<\/td>\n<\/tr>\n

\n

$17,235<\/p>\n<\/td>\n

\n

$689<\/p>\n<\/td>\n

\n

4.0%<\/p>\n<\/td>\n

 <\/span><\/td>\n\n

$29,295<\/p>\n<\/td>\n

\n

$1,172<\/p>\n<\/td>\n

\n

4.0%<\/p>\n<\/td>\n<\/tr>\n

\n

$22,980<\/p>\n<\/td>\n

\n

$1,448<\/p>\n<\/td>\n

\n

6.3%<\/p>\n<\/td>\n

 <\/span><\/td>\n\n

$39,060<\/p>\n<\/td>\n

\n

$2,461<\/p>\n<\/td>\n

\n

6.3%<\/p>\n<\/td>\n<\/tr>\n

\n

$28,725<\/p>\n<\/td>\n

\n

$2,312<\/p>\n<\/td>\n

\n

8.1%<\/p>\n<\/td>\n

 <\/span><\/td>\n\n

$48,825<\/p>\n<\/td>\n

\n

$3,930<\/p>\n<\/td>\n

\n

8.1%<\/p>\n<\/td>\n<\/tr>\n

\n

$34,470<\/p>\n<\/td>\n

\n

$3,275<\/p>\n<\/td>\n

\n

9.5%<\/p>\n<\/td>\n

 <\/span><\/td>\n\n

$58,590<\/p>\n<\/td>\n

\n

$5,566<\/p>\n<\/td>\n

\n

9.5%<\/p>\n<\/td>\n<\/tr>\n

\n

$45,960<\/p>\n<\/td>\n

\n

$4,366<\/p>\n<\/td>\n

\n

9.5%<\/p>\n<\/td>\n

 <\/span><\/td>\n\n

$78,120<\/p>\n<\/td>\n

\n

$7,421<\/p>\n<\/td>\n

\n

9.5%<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

Oba\u00admacare is a pret\u00adty good deal for peo\u00adple clos\u00adest to the fed\u00ader\u00adal pover\u00adty line ($11,490 for indi\u00advid\u00adu\u00adals, $19,530 for a fam\u00adi\u00adly of 3), par\u00adtic\u00adu\u00adlar\u00adly if they reside in states that have refused to extend Med\u00adic\u00adaid cov\u00ader\u00adage to peo\u00adple in this income group.<\/span>  <\/span>Accord\u00ading to the Bureau of Labor Sta\u00adtis\u00adtics (BLS<\/span>), house\u00adholds with incomes of between $10,000 and $15,000 cur\u00adrent\u00adly spend, on aver\u00adage, 4.9 per\u00adcent of their income on health insur\u00adance <\/span><\/span>(2010 Expen\u00addi\u00adtures Shares Data<\/a>,<\/span> Income Before Tax\u00ades).<\/span>  <\/span>Sub\u00adsi\u00addies will lim\u00adit this to 2\u20133 per\u00adcent, depend\u00ading on house\u00adhold size.<\/span>  <\/span><\/span><\/p>\n

The deal starts to sour as we move up the income scale.<\/span><\/span>  <\/span>At $22,980 for an indi\u00advid\u00adual ($39,060 for a fam\u00adi\u00adly of 3), peo\u00adple are required to pay 6.3 per\u00adcent of their income for health insur\u00adance pre\u00admi\u00adums.<\/span><\/span>  <\/span>Cur\u00adrent\u00adly, peo\u00adple in those income ranges only pay 4.9 to 5.4 per\u00adcent.<\/span><\/span>  <\/span>These are not glam\u00adorous salaries.<\/span><\/span>  <\/span>And though peo\u00adple in this brack\u00adet like\u00adly receive at least some forms of gov\u00adern\u00adment assis\u00adtance, they are liv\u00ading close to the edge, with things like food, hous\u00ading and oth\u00ader neces\u00adsi\u00adties crowd\u00ading out most dis\u00adcre\u00adtionary spend\u00ading.<\/span><\/span>  <\/span>Many will strug\u00adgle to squeeze $100 or $200 out of their month\u00adly bud\u00adgets to pay their sub\u00adsi\u00addized premiums.<\/span><\/span><\/span><\/p>\n

While in the cur\u00adrent sys\u00adtem, health insur\u00adance pre\u00admi\u00adums tend to lev\u00adel off at around 5 per\u00adcent as incomes rise, Oba\u00admacare will require peo\u00adple with incomes as low as $34,470 to pay 9.5 per\u00adcent of their earn\u00adings for health insur\u00adance cov\u00ader\u00adage.<\/span>  <\/span>That\u2019s near\u00adly twice the 4.9 per\u00adcent aver\u00adage that peo\u00adple in the $30,000-$40,000 income brack\u00adet cur\u00adrent\u00adly pay. <\/span><\/span><\/span><\/p>\n

And should they get rais\u00ades \u2013 a pro\u00admo\u00adtion, a bet\u00adter job, more hours \u2013 they will have to pay more for cov\u00ader\u00adage.<\/span>  <\/span>Ris\u00ading health insur\u00adance pre\u00admi\u00adums will func\u00adtion much like a tax, eat\u00ading away sub\u00adstan\u00adtial por\u00adtions of their increased wages.<\/span><\/span>  <\/span>The table below shows how pre\u00admi\u00adums rise along with income.<\/span><\/span>  <\/span>For an indi\u00advid\u00adual, for exam\u00adple, a $5,745 increase in income from $28,725 to $34,470 would result in addi\u00adtion\u00adal pre\u00admi\u00adums of $962.<\/span><\/span>  <\/span>Thus, 16.8 per\u00adcent of that increase in income would have to be paid in health insur\u00adance pre\u00admi\u00adums (what the table calls the \u201cpre\u00admi\u00adum tax\u201d).<\/span><\/span>  <\/span>Since pay\u00adroll and oth\u00ader tax\u00ades also rise with income, the work\u00ader is left with less and less of that raise to spend as she pleases.<\/span><\/span><\/span><\/p>\n\n\n\n\n\n\n\n\n\n\n\n
\n

Indi\u00advid\u00adual<\/span><\/strong><\/p>\n<\/td>\n

 <\/span><\/td>\n\n

Fam\u00adi\u00adly of 3<\/span><\/strong><\/p>\n<\/td>\n<\/tr>\n

\n

Income<\/strong><\/p>\n<\/td>\n

\n

Income Inc<\/strong><\/p>\n<\/td>\n

\n

Pre\u00admi\u00adum Inc<\/strong><\/p>\n<\/td>\n

\n

Pre\u00admi\u00adum Tax<\/strong><\/p>\n<\/td>\n

\n

 <\/span><\/strong><\/p>\n<\/td>\n

\n

Income<\/strong><\/p>\n<\/td>\n

\n

Income Inc<\/strong><\/p>\n<\/td>\n

\n

Pre\u00admi\u00adum Inc<\/strong><\/p>\n<\/td>\n

\n

Pre\u00admi\u00adum Tax<\/strong><\/p>\n<\/td>\n<\/tr>\n

\n

$11,490<\/p>\n<\/td>\n

 <\/span><\/td>\n <\/span><\/td>\n <\/span><\/td>\n <\/span><\/td>\n\n

$19,530<\/p>\n<\/td>\n

 <\/span><\/td>\n <\/span><\/td>\n <\/span><\/td>\n<\/tr>\n
\n

$15,282<\/p>\n<\/td>\n

\n

$3,792<\/p>\n<\/td>\n

\n

$229<\/p>\n<\/td>\n

\n

6.0%<\/p>\n<\/td>\n

 <\/span><\/td>\n\n

$25,975<\/p>\n<\/td>\n

\n

$6,445<\/p>\n<\/td>\n

\n

$389<\/p>\n<\/td>\n

\n

6.0%<\/p>\n<\/td>\n<\/tr>\n

\n

$17,235<\/p>\n<\/td>\n

\n

$1,953<\/p>\n<\/td>\n

\n

$231<\/p>\n<\/td>\n

\n

11.8%<\/p>\n<\/td>\n

 <\/span><\/td>\n\n

$29,295<\/p>\n<\/td>\n

\n

$3,320<\/p>\n<\/td>\n

\n

$393<\/p>\n<\/td>\n

\n

11.8%<\/p>\n<\/td>\n<\/tr>\n

\n

$22,980<\/p>\n<\/td>\n

\n

$5,745<\/p>\n<\/td>\n

\n

$758<\/p>\n<\/td>\n

\n

13.2%<\/p>\n<\/td>\n

 <\/span><\/td>\n\n

$39,060<\/p>\n<\/td>\n

\n

$9,765<\/p>\n<\/td>\n

\n

$1,289<\/p>\n<\/td>\n

\n

13.2%<\/p>\n<\/td>\n<\/tr>\n

\n

$28,725<\/p>\n<\/td>\n

\n

$5,745<\/p>\n<\/td>\n

\n

$865<\/p>\n<\/td>\n

\n

15.1%<\/p>\n<\/td>\n

 <\/span><\/td>\n\n

$48,825<\/p>\n<\/td>\n

\n

$9,765<\/p>\n<\/td>\n

\n

$1,470<\/p>\n<\/td>\n

\n

15.1%<\/p>\n<\/td>\n<\/tr>\n

\n

$34,470<\/p>\n<\/td>\n

\n

$5,745<\/p>\n<\/td>\n

\n

$962<\/p>\n<\/td>\n

\n

16.8%<\/p>\n<\/td>\n

 <\/span><\/td>\n\n

$58,590<\/p>\n<\/td>\n

\n

$9,765<\/p>\n<\/td>\n

\n

$1,636<\/p>\n<\/td>\n

\n

16.8%<\/p>\n<\/td>\n<\/tr>\n

\n

$45,960<\/p>\n<\/td>\n

\n

$11,490<\/p>\n<\/td>\n

\n

$1,092<\/p>\n<\/td>\n

\n

9.5%<\/p>\n<\/td>\n

 <\/span><\/td>\n\n

$78,120<\/p>\n<\/td>\n

\n

$19,530<\/p>\n<\/td>\n

\n

$1,855<\/p>\n<\/td>\n

\n

9.5%<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

There\u2019s one more catch for these house\u00adholds: the high\u00ader their pre\u00admi\u00adums, the less insur\u00adance will pay for their care.<\/span>  <\/span>Oba\u00admacare gets them com\u00ading and going, as the table below shows [PPACA<\/span>, <\/span><\/span>1402\u00a9(2<\/a>)].<\/span> The low\u00adest income indi\u00advid\u00adu\u00adals will pay $230 annu\u00adal\u00adly for cov\u00ader\u00adage that will finance, on aver\u00adage, 94 per\u00adcent of the cost of cov\u00adered ser\u00advices.<\/span>  <\/span>Those who pay $4,366 per year will get insur\u00adance that picks up, on aver\u00adage, 70 per\u00adcent of the cost of cov\u00adered ser\u00advices.<\/span><\/span>  <\/span>They will pay 19 times more for insur\u00adance that will stick them with 5 times as much in copays and deductibles (6 per\u00adcent vs. 30 percent).<\/span><\/span><\/span><\/p>\n\n\n\n\n\n\n\n\n\n\n\n
\n

Indi\u00advid\u00adual<\/span><\/strong><\/p>\n<\/td>\n

 <\/span><\/td>\n\n

Fam\u00adi\u00adly of 3<\/span><\/strong><\/p>\n<\/td>\n<\/tr>\n

\n

Income<\/strong><\/p>\n<\/td>\n

\n

Plan Cov\u00aders<\/strong><\/p>\n<\/td>\n

\n

Insured Pays<\/strong><\/p>\n<\/td>\n

<\/td>\n\n

Income<\/strong><\/p>\n<\/td>\n

\n

Plan Cov\u00aders<\/strong><\/p>\n<\/td>\n

Insured Pays<\/strong><\/td>\n<\/tr>\n
\n

$11,490<\/p>\n<\/td>\n

\n

94%<\/p>\n<\/td>\n

\n

6%<\/p>\n<\/td>\n

<\/td>\n\n

$19,530<\/p>\n<\/td>\n

\n

94%<\/p>\n<\/td>\n

\n

6%<\/p>\n<\/td>\n<\/tr>\n

\n

$15,282<\/p>\n<\/td>\n

\n

94%<\/p>\n<\/td>\n

\n

6%<\/p>\n<\/td>\n

<\/td>\n\n

$25,975<\/p>\n<\/td>\n

\n

94%<\/p>\n<\/td>\n

\n

6%<\/p>\n<\/td>\n<\/tr>\n

\n

$17,235<\/p>\n<\/td>\n

\n

87%<\/p>\n<\/td>\n

\n

13%<\/p>\n<\/td>\n

<\/td>\n\n

$29,295<\/p>\n<\/td>\n

\n

87%<\/p>\n<\/td>\n

\n

13%<\/p>\n<\/td>\n<\/tr>\n

\n

$22,980<\/p>\n<\/td>\n

\n

73%<\/p>\n<\/td>\n

\n

27%<\/p>\n<\/td>\n

<\/td>\n\n

$39,060<\/p>\n<\/td>\n

\n

73%<\/p>\n<\/td>\n

\n

27%<\/p>\n<\/td>\n<\/tr>\n

\n

$28,725<\/p>\n<\/td>\n

\n

70%<\/p>\n<\/td>\n

\n

30%<\/p>\n<\/td>\n

<\/td>\n\n

$48,825<\/p>\n<\/td>\n

\n

70%<\/p>\n<\/td>\n

\n

30%<\/p>\n<\/td>\n<\/tr>\n

\n

$34,470<\/p>\n<\/td>\n

\n

70%<\/p>\n<\/td>\n

\n

30%<\/p>\n<\/td>\n

<\/td>\n\n

$58,590<\/p>\n<\/td>\n

\n

70%<\/p>\n<\/td>\n

\n

30%<\/p>\n<\/td>\n<\/tr>\n

\n

$45,960<\/p>\n<\/td>\n

\n

70%<\/p>\n<\/td>\n

\n

30%<\/p>\n<\/td>\n

<\/td>\n\n

$78,120<\/p>\n<\/td>\n

\n

70%<\/p>\n<\/td>\n

\n

30%<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

Had Repub\u00adli\u00adcans writ\u00adten this law, it might have been called a war on the poor.<\/span><\/span><\/p>\n

And on the young.<\/span>  <\/span>Accord\u00ading to the BLS<\/span>, the aver\u00adage house\u00adhold head\u00aded by some\u00adone aged 25\u201334 in 2010 con\u00adsist\u00aded of 3 per\u00adsons and had income of $59,613 (2010 Expen\u00addi\u00adture Sur\u00advey<\/a>,<\/span> Age of Ref\u00ader\u00adence Per\u00adson). <\/span><\/span>  Under Oba\u00admacare, f<\/span>ami\u00adly cov\u00ader\u00adage for such a house\u00adhold would cost $5663 (9.5 per\u00adcent of $59,613).<\/span><\/span>  <\/span>They cur\u00adrent\u00adly devote just 2.3 per\u00adcent of expen\u00addi\u00adtures to health insur\u00adance.<\/span><\/span>  <\/span>It\u2019s true that the unin\u00adsur\u00adance rate among peo\u00adple this age is high.<\/span><\/span>  <\/span>Those with cov\u00ader\u00adage prob\u00ada\u00adbly spend more than 2.3 per\u00adcent on their pre\u00admi\u00adums.<\/span><\/span>  <\/span>But those who lack cov\u00ader\u00adage cur\u00adrent\u00adly spend noth\u00ading, which only makes the price tag for cov\u00ader\u00adage \u2013 even sub\u00adsi\u00addized cov\u00ader\u00adage \u2013 the more daunt\u00ading.<\/span><\/span>  <\/span>To go from spend\u00ading noth\u00ading on health insur\u00adance to spend\u00ading 9.5 per\u00adcent of their income on it is quite a jump.<\/span><\/span>  <\/span>Under Oba\u00admacare, health insur\u00adance would be the fourth high\u00adest house\u00adhold expen\u00addi\u00adture for peo\u00adple in this age group, behind only hous\u00ading (36.1 per\u00adcent), trans\u00adporta\u00adtion (17.7 per\u00adcent) and food (13.1 percent).<\/span><\/span><\/span><\/p>\n

The end\u00adless back-and-forth between the law\u2019s back\u00aders and detrac\u00adtors over \u201cstick\u00ader shock\u201d miss\u00ades this point.<\/span>  <\/span>Whether Oba\u00admacare will increase or decrease a par\u00adtic\u00adu\u00adlar person\u2019s pre\u00admi\u00adum is depen\u00addent on spe\u00adcif\u00adic facts and cir\u00adcum\u00adstances.<\/span><\/span>  <\/span>The issue isn\u2019t just price; it\u2019s what peo\u00adple are will\u00ading to pay.<\/span><\/span>  <\/span>And that\u2019s espe\u00adcial\u00adly true of healthy peo\u00adple who are young, who earn mod\u00adest incomes, or both.<\/span><\/span><\/span><\/p>\n

Which is why the Pres\u00adi\u00addent has tak\u00aden such a curi\u00adous posi\u00adtion on man\u00addates.<\/span>  <\/span>He delayed until 2015 the tax penal\u00adty on employ\u00aders who refuse to pro\u00advide health cov\u00ader\u00adage to their work\u00aders.<\/span><\/span>  <\/span>But he con\u00adtin\u00adues to insist that the tax penal\u00adty on indi\u00advid\u00adu\u00adals for not buy\u00ading cov\u00ader\u00adage take effect on Jan\u00adu\u00adary 1.<\/span><\/span>  <\/span>Why give cor\u00adpo\u00adra\u00adtions a pass but insist on threat\u00aden\u00ading work\u00ading peo\u00adple with tax penal\u00adties?<\/span><\/span>  <\/span>Because work\u00ading peo\u00adple might just decide that Oba\u00admacare isn\u2019t quite the deal they\u2019d hoped for.<\/span><\/span><\/span><\/p>\n

The Wash\u00ading\u00adton Post<\/a> <\/span>recent\u00adly chron\u00adi\u00adcled efforts by the White House to per\u00adsuade young peo\u00adple to buy cov\u00ader\u00adage. <\/span> <\/span>David Simas, who head\u00aded the Oba\u00adma campaign\u2019s youth out\u00adreach, is now look\u00ading for ways to get those young vot\u00aders to spend their mon\u00adey on insur\u00adance cov\u00ader\u00adage.<\/span><\/span>  <\/span>Accord\u00ading to the arti\u00adcle, Simas knows:<\/span><\/span><\/span><\/p>\n

\u201c<\/span>which tele\u00advi\u00adsion chan\u00adnels they like to watch (Spike TV<\/span>, among oth\u00aders), which social-media plat\u00adforms they use (Twit\u00adter, Face\u00adbook) and who they lis\u00adten to (\u2018No sur\u00adprise. It\u2019s mom.\u2019). \u2018We can fig\u00adure out the mes\u00adsage that works best for this group,\u2019 Simas says.\u201d<\/span><\/span><\/p><\/blockquote>\n

Simas also knows that Oba\u00admacare will be a hard sell with young people.<\/span><\/span><\/p>\n

\u201c<\/span>When they asked in a recent sur\u00advey whether a $210 pre\u00admi\u00adum was afford\u00adable, only 29 per\u00adcent of like\u00adly mar\u00adket\u00adplace enrollees said yes. Then, [the poll\u00adsters] phrased the ques\u00adtion a bit dif\u00adfer\u00adent\u00adly. They told the focus group par\u00adtic\u00adi\u00adpants that, with their tax cred\u00adits, they would save \u2018$1,908 a year com\u00adpared to what you would pay on your own.\u2018<\/span>All of a sud\u00adden, 48 per\u00adcent of the par\u00adtic\u00adi\u00adpants thought that insur\u00adance was afford\u00adable. But 48 per\u00adcent is still less than half.\u201d<\/span><\/span><\/span><\/p><\/blockquote>\n

I under\u00ades\u00adti\u00admat\u00aded Simas\u2019s abil\u00adi\u00adties to turn out the youth vote in last year\u2019s elec\u00adtion.<\/span>  <\/span>I\u2019ll not make that mis\u00adtake again. <\/span><\/span> <\/span>His ana\u00adlyt\u00adics made polit\u00adi\u00adcal his\u00adto\u00adry last fall; he may well suc\u00adceed again this fall when peo\u00adple begin to sign up for cov\u00ader\u00adage through the exchanges.<\/span><\/span>  This time, he will have not only sub\u00adsi\u00addie<\/span>s and appeals to social respon\u00adsi\u00adbil\u00adi\u00adty in his arse\u00adnal; he\u2019ll also have the threat of penal\u00adties.  <\/span><\/span>Hence, the President\u2019s insis\u00adtence that tax penal\u00adties on the unin\u00adsured not be delayed.<\/span><\/span>  <\/span><\/span><\/span><\/p>\n

The House vot\u00aded to delay those tax penal\u00adties this past week.<\/span>  <\/span>In one of those bizarre days that can only hap\u00adpen in Wash\u00ading\u00adton, the Pres\u00adi\u00addent threat\u00adened to veto a bill offered by House Repub\u00adli\u00adcans to cod\u00adi\u00adfy the one-year delay in the employ\u00ader man\u00addate that his own Admin\u00adis\u00adtra\u00adtion had imple\u00adment\u00aded.<\/span><\/span>  <\/span>He also threat\u00adened to veto a bill to delay the indi\u00advid\u00adual man\u00addate for a year.<\/span><\/span>  <\/span>Both bills passed with a sur\u00adpris\u00ading lev\u00adel of sup\u00adport from House Democ\u00adrats<\/a>.<\/span><\/span>  <\/span>The Sen\u00adate may well vote on these bills in one form or anoth\u00ader lat\u00ader this year.<\/span><\/span><\/span><\/p>\n

Dur\u00ading one of the House votes on these mea\u00adsures, a caller to C\u2011SPAN<\/span> com\u00adplained about how she had to pay at the pre\u00adscrip\u00adtion counter for her blood pres\u00adsure med\u00adi\u00adcine now that she had been shift\u00aded from Med\u00adic\u00adaid to some oth\u00ader form of pub\u00adlic med\u00adical assis\u00adtance.<\/span>  She no longer gets the med\u00adi\u00adcine for free.  She found t<\/span>he notion of hav\u00ading to con\u00adtribute to the cost of her own med\u00adi\u00adcine high\u00adly objectionable. <\/span><\/span><\/span><\/p>\n

I won\u00adder how she will feel when she finds out that Oba\u00admacare may require her to pay some\u00adthing for her health cov\u00ader\u00adage as well.<\/span><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

Pres\u00adi\u00addent Oba\u00adma promised change.  Oba\u00admacare will bring it.  But one of its most far-reach\u00ading changes has noth\u00ading to do with health care. <\/p>\n","protected":false},"author":3,"featured_media":985,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"nf_dc_page":"","wp_typography_post_enhancements_disabled":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"nfd_image_url":"","nfd_onboarding_generated":"","footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2},"jetpack_post_was_ever_published":false},"categories":[17,16,124],"tags":[413,114,1194,401,412,411,30,54,414,1184,1188,367,405,1190,29,106,5],"class_list":["post-979","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-entitlements","category-health-care","category-obamacare","tag-aca","tag-bls","tag-congress","tag-exchanges","tag-federal-income-tax","tag-health-care-2","tag-house","tag-irs","tag-mandates","tag-medicaid","tag-obamacare","tag-oecd","tag-ppaca","tag-president-obama","tag-senate","tag-tax","tag-washington-post"],"aioseo_notices":[],"aioseo_head":"\n\t\t\n\t\n\t\n\t\n\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t