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Will Healthcare Reform Kill Jobs for Young People?

We don’t wade that much into politics here on StudentStuff unless it’s directly related to the plight of the student. Healthcare is certainly something that qualifies. With all of the talk about reforming the system and government plans, here’s a great article about the issues being brought up that I urge everyone to check out.

Here’s one of the issues being tossed about: students and younger workers are already suffering higher unemployment than the rest of the nation and healthcare could send it even higher. Many employers offer part-time employment because then they won’t have to offer health care benefits. This is a two-way street. Students get flexibility in scheduling and employers are willing to make greater accommodation to students to keep the best and brightest workers. In other words, both parties get a benefit. But when forced to provide insurance or pay the health tax, it can be argued that many employers will opt to hire fewer full-time workers. For one reason, it’s easier to manage a smaller number of employees and they don’t have to be as flexible as with part-time students. Many larger employers will offer health benefits even to part-time workers and they do so because younger employees cost less than older employees. If the cost is the same, employers may opt for more experienced personnel.

Now onto the question of healthcare, itself. Why would young people want to lock in high premium plans when their health care costs are relatively minimal? Currently, when given the choice, many younger workers opt out of paying for health insurance because they are still covered by their parents or feel they don’t need insurance because they are generally healthy. The new system mandates that everyone participate because it needs young people paying in to subsidize older workers who use more health care. And if you don’t want healthcare? You’ll be fined. From a student’s perspective, they are likely better off with a high deductible plan for major care and a tax deductible Health Savings Account for the occasional visit to the doctor or chiropractor and medications, including over the counters.

Unfortunately, these points are not being made in the national discourse. College kids voted in droves for Obama and yet they are the ones who are going to bear the biggest brunt of the costs involved with this legislation. Is it that they believe it’s just worth it? Or are they oblivious to the overall impact it will have  on the cost and quality of care? And if the argument is that it’s somehow the “right thing to do,” are there not other ways to reform the system without mandating, levying fines, and increasing costs?