Another aspect is that the plan won’t force 30 plus million to buy health care. The fines are too low. Combine a requirement that plans cannot deny coverage due to a preexisting condition and high premium costs and many will make the economic decision to pay the fine and wait till they need health care.
They will then sign up and immediately cost far more than they pay.
“Another aspect is that the plan won’t force 30 plus million to buy health care. The fines are too low. Combine a requirement that plans cannot deny coverage due to a preexisting condition and high premium costs and many will make the economic decision to pay the fine and wait till they need health care.
They will then sign up and immediately cost far more than they pay.”
That does make sense, the fines are pretty low around $950 or so the first year and slight increases each year after. I agree, that is not enough of an incentive to get people fully into the risk pool if the premiums are sky high.
But I haven’t seen any cogent projections of how forcing insurers to cease various denials will affect premiums in light of at least 15 million new members added to the overall risk pool (which is a VERY conservative estimate, say 50%) actually sign up under the mandate. Have you seen the subsidy rates for the various income brackets? They are pretty hefty subsidies.
But you are right, IF the premiums skyrocket and the subsidies cannot keep up, the whole plan goes right down the toilet and all we have is monetary confiscation at the point of a barrel.