We hear a lot today about the estimated 46 million people in the United States who don’t have health insurance. It’s important to realize that not all of America’s uninsured can be considered victims of a system that excludes them financially. Many go without insurance voluntarily.
Admittedly the majority of the uninsured, either can’t afford insurance or can’t get it because of pre-existing conditions, but about 2 percent of the uninsured say they just don’t want it and some scholars think that the number who cannot afford it is overestimated.
- Of the reported 46 million uninsured people, 43 percent earn more than $55,000 annually, which is 2.5 times the federal poverty level for a family of four.
- 7.5 million of the uninsured have incomes exceeding $75,000 a year.
- 44 percent of the uninsured are between the ages of 18 and 34, many of whom believe that because of their good health the don’t need insurance. Of this group of “young invincibles,” 10 percent are between the ages of 18 and 24.
Obviously, costs vary in different parts of the country and some do have other priorities that come before health insurance. But, safe to say, there is a sizeable minority that go without insurance because of the low probability that they will use it.
So should we be subsidizing healthy young people who choose to forego health insurance?
Experience tells us there are a lot of young healthy people out there who do without insurance by choice.
Here are four examples we are aware of:
- A young couple both under age 32 with three children. Their household income is $70,000, they live in an upscale house and own two late-model vehicles. Two of the children attend private schools. They don’t have health insurance.
- Another couple is under age 34 and both work. Their household income is between $70,000 and $90,000 a year. They own a modest $110,000 house and are financing two vehicles. Yet they carry no health insurance.
- A young couple with no children earn approximately $60,000 annually and live in a rented apartment. They own one vehicle and are financing another. They have two dogs and no health insurance.
- A young 26-year-old male is self-employed as a construction handyman. He makes $40,000 a year, has a late model vehicle, rents an apartment and owns a boat, but has no health insurance.
All of these people could afford health insurance if they simply put a priority on it. But they have chosen to spend their money in different ways.
Some of the health care reform bills under consideration would offer public subsidies to families up to four times the poverty level. That is your tax dollars going to assist people who can afford insurance, but would rather spend their own money elsewhere.