While we need an individual mandate, I am concerned that the House version of health care reform lets insurers charge older customers twice as much as younger customers. At this point, the Senate Finance Committee also allows insurers to discriminate by age. This
could make it very hard for 50-somethings who don’t qualify for
subsidies to afford a family plan. Under the House bill, a couple with
joint income of $75,000, before taxes, would not receive a subsidy. And
if they are self-employed, and receive no help from an employer, the
premiums that they would be expected to pay could easily run as high as
$13,000 a year. After taxes, if they live in a high-tax state, they
might take home $65,000 a year—or less. This means that health care
premiums would eat 20 percent of their income—or more.
I
don’t think it makes sense to suggest that a young couple, earning
$150,000, jointly, shouldn’t pool their resources with a 50-something
couple earning $75,000. Don’t younger Americans want to
help pay for the health insurance that their parents need? These days,
as more 50-somethings become unemployed, it’s not that unusual for
college-educated 20-somethings and 30-somethings living in two-income
households to earn significantly more than their middle-class parents.