GOP's repeal of insurance mandate could backfire

[Yo_Mama_Been_Loggin]

WASHINGTON — Getting rid of the Affordable Care Act's highly unpopular penalty for not having health insurance could backfire on Republicans, prompting significant premium increases if it were actually to pass.

One of the main reasons GOP lawmakers have given in their quest to overturn "Obamacare" is that they want to lower premiums for people who buy individual health insurance policies, particularly constituents who get no help from the law's tax credits. Some states are facing a second year of double-digit hikes.

"There is no doubt whatsoever that premiums in the individual insurance market would go up," said Larry Levitt of the nonpartisan Kaiser Family Foundation. "There is irony here in that the mantra from Republicans throughout this debate has been the need to lower premiums, but this step would do just the opposite."

Premiums would go up because insurers fear that without the penalty and the health law's underlying requirement to carry insurance, some healthy people would drop their coverage. That would leave insurers with a pool of sicker, costlier customers.

How big an increase?

An analysis last year from the nonpartisan Congressional Budget Offices estimated an increase of roughly 20 percent, and Senate Minority Leader Charles Schumer of New York says the budget office has told his staff that estimate still stands.

http://www.msn.com/en-us/news/politics/gops-repeal-of-insurance-mandate-could-backfire/ar-AAoVuiG?li=BBnb7Kz&ocid=edgsp

[grantcart]

1. This is what is known as "Adverse Legislative Selection" which

mandates everyone must be included but no one has to.

Healthy people will opt out leaving only sick, then sicker, then the sickest.

It's termed a "Death Spiral".

[BigmanPigman]

2. I don't know about other states but in CA we legally must have car insurance.

I f the same principle is applied to health care what is the problem?

[Major Nikon]

3. Because there's a fundamental difference of expectations

Car insurance is clearly understood as protection against unforeseen circumstances. You don't file for the cost of oil changes against your car insurance.

Health insurance has the expectation of both protecting you against financial disaster due to unforeseen circumstances and financing routine and preventative health care. As such analogies to other types of insurance don't work all that well.

[grantcart]

4. None. It manages the risk in the most efficient way

Medicaid and single payer systems operate on the same principle.