Clinton: Young Must Subsidize Elderly

In a rare moment of clarity in the Obamacare debate Gormer President Bill Clinton bluntly admitted that PPACA (Obamacare) requires the young to subsidize the elderly.

“I think it’s important for you to tell the people why we’re doing all this outreach,” Clinton said to Obama. “Because this only works, for example, if young people show up…We’ve got to have them in the pools because otherwise these projected low costs cannot be held if older people with preexisting conditions are disproportionately represented in any given state.”

Of course persuading the young and healthy to join is necessary to avoid the problem of adverse selection. But when you have a generation that’s having such a hard time getting decent jobs, it does seem a bit unfair to make them subsidize the wealthiest generation in American history. But since so many of them are struggling to find jobs with decent benefits, I suspect they’ll largely be willing to make the trade off, and the GOP’s arguments that Obamacare hurts Americans may just be one more action that drives a wedge between Republicans and young people.

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About J@m3z Aitch

J@m3z Aitch is a two-bit college professor who'd rather be canoeing.
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8 Responses to Clinton: Young Must Subsidize Elderly

  1. Troublesome Frog says:

    I love the conversations people have over this stuff.

    “Boo for the young subsidizing the old! Hooray for Medicare!”
    “Boo for rationing! Hooray for medical care allocated by ability to pay!”
    “Boo for bureacracy! Hooray for Wellpoint!”
    “Boo for tax disincentives for being uninsured! Hooray for the employer sponsored healthcare deduction!”

    It seems like a debate between the Twix guys.

  2. J@m3z Aitch says:

    It seems like a debate between the Twix guys.

    Nice.

  3. Ray Plenty says:

    Even more interesting is that Obama felt the same way back in 2008. He lied to the youth while on the campaign trail, telling them he was against mandates. But he was telling his staff he was going to do mandates.

    There is no reason for the young to have insurance but as a financial hedge. They likely don’t have many assets to protect. Why should they be forced to hand over anything? We already had a insurance market. But to force them to become customers of it? That is sick!

  4. lancifer666 says:

    I don’t smoke, keep my weight down, I have low blood pressure and cholesterol levels, drink in moderation, eat relatively healthy foods and exercise regularly. Thus my health is quite good for a “middle aged” guy.

    Some of this is due to the luck of favorable genetics but some is due to my acting responsibly.

    Why the hell should I be forced to subsidize people that don’t maintain a healthy lifestyle?

  5. J@m3z Aitch says:

    We already had a insurance market

    Sure. Just not one that any advocate of free and competitive markets would swoon over.

  6. Troublesome Frog says:

    Sure. Just not one that any advocate of free and competitive markets would swoon over.

    I’ve often wondered if you could end up with a more perverse system if you hired a bunch of economists and politicial scientists and gave them the following design criteria:

    1) Maximize incentives to overspend and overbill.
    2) Minimize price discovery and feedback.
    3) Trap people in jobs / minimize labor mobility.
    4) Leave the maximum number of uninsured.
    5) Make it politically impossible to get rid of.

    I have no idea how we achieved this by accident, but it seems like even experts couldn’t do worse by design.

  7. Scott Hanley says:

    @ Troublesome Frog:

    Why hire economists and political scientists to do that? They’re rather lazy and unimaginative compared to industry lobbyists.

  8. Dr X says:

    Troublesome Frog:

    I have not idea how we achieved this, but…

    An interesting paper on the history of American health insurance:

    http://www.americantaxpolicyinstitute.org/pdf/health_conference/Helms.pdf

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