The Journal of Health Economics has conducted a new study find that Obamacare’s provisions to remain on their parentsâ€™ plan until the age of 26 gives young Americans flexibility in their careers and education endeavors. In the long run, researchers believe that they could potentially increase four percent of their income.
Researchers studied state-based laws that were enacted before Obamacare that are very similar. They also found that people who were at least 18 by the time the state enacted the law had a two percent increase in wage after they turn 22.
A post by ThinkProgress explains why:
â€œSince those adult children didnâ€™t have to worry aboutÂ finding a wayÂ to get health insurance, they were free to makeÂ different decisionsÂ about their early careers. In some cases, their college tuition was cheaper because they no longer had to purchase a student health plan. In other cases, they were free to accept nontraditional jobs that didnâ€™t offer insurance. Or they were more likely to go back to school in their early 20s because they didnâ€™t need to work in order to have access to health benefits.â€
ResearchersÂ foundÂ that wage increases continued after individuals turned 26 and could no longer stay on their parents’ plans.
When comparing these findings, Obamacare has the potential to have a bigger impact since the law is now implemented in each state and young Americans could see an increase close to four percent in â€œsustainedâ€ wages.