Mandating health insurance
Those who cannot afford private insurance are offered a subsidized public option. In a legal memo published in December by the Heritage Foundation, a conservative think tank in Washington, D.
Experts on both sides of the aisle have criticized the mandate for forcing people to buy a product from a private company, but some conservatives have suggested that the mandate is not even allowable under the U. C., three lawyers argue that a person’s failure to purchase insurance does not count as interstate commerce, and therefore Congress lacks the authority to regulate it.
This repeal becomes effective in 2019 causing us to ponder to what extent the absence of a tax penalty will lead to higher premiums and to an increase in the uninsured.
Both existing research and economic theory suggest that of the three legs of the individual market, the most important is likely the premium tax credit, and the mandate likely the least important.
President Barack Obama has said that a major goal of healthcare reform is to reduce the number of legal residents who are uninsured (currently estimated at 17% of adults).
One strategy is for the government to require insurance to be sold at a fixed price regardless of preexisting conditions, but in that case, many people might wait until they get sick before they purchased insurance, which could bankrupt the system.
“What the government is trying to do is transform insurance into a welfare system.
“One problem with the Massachusetts system -- and for many workers under the proposed national system -- is that if you have an employer-sponsored health insurance offer, you are generally prohibited from getting subsidized insurance.There are reasonable arguments for taxing the public and providing subsidies for specific people in need.But why should we re-engineer the insurance market to serve a function it was not meant to serve?However, if everyone had to buy insurance, the contributions of the healthy would help pay for expenses of the sick and therefore support the program.In Massachusetts, which approved such a mandate in 2006, residents who fail to purchase insurance can be fined up to one-half the cost of the lowest-priced premium on the market, although actual fines have been much lower.
The individual market will most likely not completely collapse in the absence of an individual mandate, because the premium tax credit will probably shoulder most of the burden the mandate bore.