Reuters is reporting that youth enrollment into Obamacare has missed its target. If this trend continues, it will only mean one thing - higher premiums to cover the gap.
Youth enrollment at only 24 percent means the target was missed by 14 percent, yet the administration remains confident that these numbers will rise. They should hope so, because if not, it will prove what Republicans have warned since the beginning and what the media ignores altogether - Obamacare is too expensive.
One factor that may be keeping young people from signing up is the fact that 3 million are now allowed to stay on their parents' insurance plans. This creates a huge problem for Obamacare because its architects are relying on young and healthy people enrolling to offset the cost of covering older, sicker people.
This trend is turning out to be a worst-case scenario.
A recent report from the Kaiser Family Foundation said having younger adults make up only 25 percent of enrollees would present a "worst case" scenario. They found that costs then would be about 2.4 percent higher, but insurers would retain a very slim profit margin.
Therefore, insurance premiums will be raised. But this comes as no surprise to anyone paying attention.
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