Will Obamacare Work in New York and Vermont?

Obamacare is setting up health-care exchanges to cover residents throughout the U.S., but some states have interesting quirks of their own. As a result, residents in some states could see much different provisions from others as they enroll in health-care exchanges under the Affordable Care Act.

In the following video, Dan Caplinger, The Motley Fool's director of investment planning and author of the special free report "Everything You Need to Know About Obamacare," talks with Motley Fool health-care bureau chief Max Macaluso about how New York and Vermont will charge the same premiums to people of all ages. Dan notes how big a departure that is from typical practice, in which younger, healthier people tend to pay lower premiums than older people with more health-care needs.

Dan and Max then discuss the potential fallout from charging the same premiums to people of all ages. The move effectively represents a transfer of higher costs from older residents to younger residents whose costs would generally be lower. Dan speculates that such a transfer could dissuade younger residents from participating and could hurt insurance companies counting on a representative cross-section of the population. He notes that Aetna (NYSE: AET  ) is offering health-insurance policies in New York but is staying outside the Obamacare health-exchange framework, and Cigna (NYSE: CI  ) won't be in the New York exchange either. WellPoint (NYSE: WLP  ) and its Empire BlueCross affiliate will be represented in New York's health-care exchange, giving investors a chance to see whether it benefits from the unusual New York framework.

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  • Report this Comment On September 29, 2013, at 6:40 PM, mbee1 wrote:

    California and its politcal divisions already do that for the health care of their employees. Age is not counted, only the number of people in the family unit and whether one or more are enrolled in medicare. They have been doing that for decades and the sky has not fallen and the world has not ended.

  • Report this Comment On September 29, 2013, at 7:02 PM, julio2 wrote:

    Young people are getting screwed by Obamacare and have no intention of signing up in Vermont.

  • Report this Comment On September 29, 2013, at 7:44 PM, illegalnotlegal wrote:

    Anyone below the age of 30 should not accept this. It is not fair to them but is great for people over the age of 30!

  • Report this Comment On September 29, 2013, at 7:57 PM, ardoucette wrote:

    Big difference @mbee1, this is insurance whose majority of the cost is provided by the State, not insurance one has to buy.

    In NY & Vermont, its a great deal for 60 years old, not so good for 30 year olds who have to buy it.

  • Report this Comment On September 29, 2013, at 8:09 PM, tristinstone wrote:

    Obama thinks that he can make every person in America 100% equal? It will never happen! This might be law now, but wait til there a gop president, congress and senate, and Ill bet they make a new law to get rid of it.

  • Report this Comment On September 29, 2013, at 8:44 PM, drakeiverson wrote:

    Insurance companies have always had the power of "life and death" over the population. They have been able to pick and choose who they will or will not insure, and they adjusted their rates based on their own self-serving criteria. People with pre-existing conditions--including children--were basically told to go die in the street. If you are only listening to the anti-Obama rhetoric then you are NOT getting the real story. You need to get personally involved and do your own research.

    The Number One cause of personal bankruptcy in this country is MEDICAL EXPENSES. When people don't have insurance, they don't go to a doctor. Instead, they wait until the condition (like cancer) is so far advanced that the most expensive treatments are required. In addition, when an uninsured person gets sick or injured, they rush to the ER, knowing that they cannot be turned away (even if they cannot pay for the treatment!) THIS alone is one of the main reasons our medical costs are outrageously high!

    When FDR put through the Social Security Act, the Republicans screamed that it would bankrupt the govt! When LBJ instituted Medicare, again the Republicans wailed and cried and prophesied doom and gloom and disaster! Now they are attacking the Affordable Care Act (derisively calling it "Obamacare") with the same predictions of financial Armageddon. Do you see a pattern here? Why is it always the Republicans who scream the loudest and try to crush these programs designed to help American citizens?

    If you are receiving Social Security benefits or Medicare or food stamps or unemployment benefits you have a DEMOCRATIC PRESIDENT to thank. Think about THAT before you join the ranks of doom-sayers. EDUCATE YOURSELF before you condemn.

  • Report this Comment On September 29, 2013, at 8:44 PM, drakeiverson wrote:

    Why isn’t anyone talking about “Romneycare”? During his presidential run, Mitt Romney couldn’t boast enough about how he authored and launched the single-payer, affordable health care program in his home state of Massachusetts. And the truth is…it IS a highly successful program, and it IS self-sustaining, and according to a recent poll 86% of the people enrolled in it ARE very happy with it.

    So, why aren’t the Obamacare haters (aka Republicans) singing the praises of their “home boy’s” triumphant health care program? WHY? Because, even though Obamacare was created almost point for point from the Romneycare blueprint, it is still viewed as a “DEMOCRATIC” entity, and the GOP is more concerned about destroying everything Obama-related than it is helping to build a nationwide healthcare system that would help ALL Americans.

    If anything sounded treasonous or “terroristic” in nature, it is the way the Republicans are deliberately subverting and sabotaging the President of the United States of America at every possible turn. We are on the brink of making history by putting comprehensive healthcare within the reach of every American citizen. Yet all the Republican party wants to do is DESTROY OBAMA AT ALL COST! And they don’t seem to care who must suffer in the process. (But then, why should THEY worry? They know they are guaranteed HEALTHCARE BENEFITS FOR LIFE—all at taxpayers’ expense!!!)

  • Report this Comment On September 29, 2013, at 9:06 PM, Namath13 wrote:

    Of course it'll work....... for the insurance companies that is!!

    Just pay your premiums and shut up, we have illegals here that need resources!!!

  • Report this Comment On September 30, 2013, at 8:28 AM, BeverlyT wrote:

    Remember everybody, you can keep your own existing insurance if you have it. And if you don't, you DON'T have to buy it through the exchanges. You can go to an insurance company independently as usual and buy it. Compare the prices with the independent company and through Obamacare exchanges by getting a quote from each source, THEN decide. It's the law that you GET insurance, but you don't have to buy it from the government, though no one mentions that.

  • Report this Comment On September 30, 2013, at 8:30 AM, BeverlyT wrote:

    The mainstream media also does not mention that the Republicans HAVE come up with a solution...they propose tax credits for those people who go out and buy health insurance, rather than have a government owned healthcare plan that will turn into socialized medicine like in Europe and Canada. A plan that has to be paid for with the middle class citizens' blood and sweat working part time jobs, paying higher taxes on everything!

  • Report this Comment On September 30, 2013, at 11:52 AM, DrP79 wrote:

    Will it work in NY and Vermont?

    Those are among the most liberal states with the highest level of STATE regulations so the baseline cost is already higher than average.

    Yet the real fraud is that this will NOT lower cost. It may shift some costs, but everybody gets a big slice of additional debt in addition.

    Just because one may get a small benefit in selected states, unless you add back the additional debt the numbers are highly misleading even in the most liberal states.

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