As part of his healthcare reform pitch to young Americans, President Barack Obama has repeatedly claimed that buying Obamacare will be cheaper than a cellphone bill or cable bill for most young Americans.
“Knowing you can offer your family the security of health care, that’s priceless. Now, you can do it for the cost of your cable bill, probably less than your cellphone bill,” President Obama said at an event in September. “Think about that, good health insurance for the price of your cellphone bill or less.”
And here’s Obama in October: “In fact, nearly half of all single, uninsured 18-to-34-year-olds may be able to buy insurance for 50 bucks a month or less. Less than your cellphone bill, less than your cable bill.”
Obama’s cellphone line has always been questionable. The cost of a mid-level healthcare plan after subsidies for the average 22-year-old who is not on his or her parent’s insurance is approximately $1,600 a year. That comes out to a total of $138.58 per month – a price that is certainly greater than the average cellphone bill or cable bill. By comparison, a T-Mobile cellphone plan with unlimited, talk, text and 2 gigs of data is roughly $100.00 a month.
Even left-leaning Politifact noted that while it deems the statement ‘mostly true,’ “health insurance isn’t the same thing as a cell phone bill.”
“It’s insurance, so people who get sick will face additional costs in the form of co-pays and deductibles. Policyholders who get sick could be shelling out thousands of dollars each year for health care, much more than any cell phone bill,” Politifact argued in October.
Considering that the average 25 -34 year old makes upward of $50,000 a year and 15-24 year olds make approximately $30,000 a year, according to the latest census data, the only way most young Americans who are not on their parents’ health insurance would pay less than their cellphone or cable bills for Obamacare would be if they paid the fine to opt-out of the government-mandated program. Most employed young people who don’t have health insurance would find themselves paying a fine of $300 – $500 a year, or $25-$42 a month. Unemployed young people would pay a fine of $95 a year total.
Caught in another ‘incorrect promise’ President Obama admitted today that he doesn’t have a smart phone, so he doesn’t actually know how much young Americans’ cellphone bills are. And as for his claims that Obamacare would be cheaper than paying for your cable bill or your cellphone bill, well now Obama claims it will be cheaper than paying for your cellphone and cable combined.
“Most young people without insurance can now get covered for under 100 bucks a month. Now, I am not allowed, for security reasons, to have an iPhone. I don’t know what your bills are,” Obama told attendees at today’s White House Youth Summit. “I notice that Sasha and Malia seem to spend a lot of time on it. My suspicion is that for a lot of you, between your cable bill, your phone bill, you’re spending more than 100 bucks a month.”
Given that the average cable bill is $78.00 and the average smartphone bill is $100.00, it’s true that most young Americans on Obamacare who receive subsidies would pay less than their cellphone and cable bills per month for Obamacare. But when one considers that approximately 2.1 million young Americans ages 18-34 may not receive those subsides, the price of Obamacare suddenly gets a bit steeper. That average 22-year-old’s premium jumps up to $205.25 a month, which is more than the $178.00 the average young American is paying for his or her gadgets.
At the very least, Obama’s argument is still dubious even if one compares the amount he or she will pay for Obamacare to the amount he or she pays for his or her cell phone and cable bill. The White House is clearly reaching on this one.
