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The Purpose Of The Individual Mandate

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The term “individual mandate,” as a component of the Affordable Care Act, is a mandatory requirement according to which the majority of people in the United States has to have some kind of health insurance. Most specifically, according to the fundamentals of this regulation, any individual who can afford a health insurance policy, but chooses not to do so, will have to pay a fine. Prior to the existence of the individual mandate, health insurance companies had the choice to reject people with health conditions that would potentially incur high costs. Because of this reason, a significant number of people did not have any health coverage. In order to maintain insurance premiums reasonably steady and sustain government cost balanced,…show more content…
The individual mandate, at this point, presents itself as the most cost-effective and affordable way through which reasonably-priced coverages are available to the mass population. The bests advantage of the individual mandate, according to Nick Tate, is that “it prevents insurance companies from rejecting people because they have a pre-existing health condition. Under this provision, all Americans benefit a coverage plan regardless of their health Status.” When healthcare companies are legally obligated to accept policy holders with any situation, every single American has the obligation to enroll in a healthcare plan. Therefore, the dilemma of people trying avoid having such a plan disappear as it become illegal to be living without any coverage.
Government Subsidies for the Lower Income Individuals
To make it easier for every American to enroll in a plan, “the Federal government provides lower income taxpayers who do not receive insurance from employers or other sources and do not qualify for an exemption with a premium tax credit to subsidize the purchase of qualified health plans purchased through an Exchange.” Radically the individual mandate reflects the image of a program
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