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Posted by / 24-Feb-2020 18:36

Mandating health insurance

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.

“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.If there were no individual mandate included in the legislation, this would create a situation where people would be likely to wait until they had a health problem diagnosed before they applied for insurance.That would cause premiums to increase and make coverage increasingly unattractive to people who are young and healthy.“The best evidence in support of an individual mandate comes from Massachusetts, where it has been very effective: Just 2.6% of the population remains uninsured.While some additional subsidies might increase that rate of coverage a little bit, that’s about as close as you can get to universal coverage without making everybody automatically enrolled through a single-payer system that draws from taxes.

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A commentary by a lawyer published this month in the New England Journal of Medicine disputed that interpretationdisputed that interpretation.