The Patient Protection and Affordable Care Act, also known as
Obamacare, has been controversial ever since it was enacted. But
what's become increasingly clear to those on both sides of the
debate is that the success of the program relies on having enough
young people enroll for Obamacare. Yet many Americans don't
really understand why having young people in Obamacare makes such
a vital difference.
In the following video, Dan Caplinger, The Motley Fool's
director of investment planning, explains why the economics of
the health-insurance marketplaces rely so much on having a
representative sample of the overall population. Health-insurance
have all made projections about how many people will participate
in setting rates, and if those assumptions prove incorrect, then
insurers might have to raise rates dramatically in future years.
Dan notes that given the risk-sharing attributes of insurance
generally, having only higher-risk older participants would
increase the overall costs of Obamacare dramatically, threatening
its long-term financial viability. Dan concludes that the more
young people participate in the plan -- even if they pay lower
premiums -- the more effective Obamacare will be as a true
insurance program rather than simply a cost-sharing
Don't fall into the Obamacare generation gap
Understanding all the ins and outs of Obamacare might seem
complicated, but it doesn't have to be. In only minutes, you
can learn the critical facts you need to know in a special free
report called "
Everything You Need to Know About Obamacare
Everything You Need to Know About Obamacare." But don't
hesitate, because it's not often that we release a free guide
containing this much information and money-making advice.
click here to access your free copy.
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