By using this site, you agree to the Privacy Policy and Terms of Use.
Accept
Health Works CollectiveHealth Works CollectiveHealth Works Collective
  • Health
    • Mental Health
    Health
    Healthcare organizations are operating on slimmer profit margins than ever. One report in August showed that they are even lower than the beginning of the…
    Show More
    Top News
    The Top Benefits of a Wearable Blood Pressure Monitor Watch
    The Top Benefits of a Wearable Blood Pressure Monitor Watch
    June 13, 2022
    EMDR therapy for PTSD and other health benefits
    What Mental Health Conditions can EMDR Therapy Treat?
    November 1, 2022
    The perfect routine to maintain your weight over the holidays
    The Perfect Routine to Maintain your Weight over the Holidays
    January 11, 2023
    Latest News
    Managing Your Health After a Worksite Accident
    December 10, 2023
    Biohazard Cleanup: The Importance of Proper Disposal and Containment
    December 2, 2023
    Medicare Helps Seniors, and People with Disabilities & ESRD
    November 27, 2023
    The Link Between Allergies and Sinusitis & Strategies for Relief
    November 27, 2023
  • Policy and Law
    • Global Healthcare
    • Medical Ethics
    Policy and Law
    Get the latest updates about Insurance policies and Laws in the Healthcare industry for different geographical locations.
    Show More
    Top News
    Advocating for Patients at ASCO, The “World Series” of Cancer
    June 3, 2011
    Are Women Getting Crazier? Medco Seems to Think So
    March 21, 2012
    Florida Proposing New Medicaid Fees
    July 12, 2011
    Latest News
    The Role Of Second Opinions In Medical Errors
    December 10, 2023
    Urgent Care in Downers Grove: Meeting Community Health Care Needs
    December 10, 2023
    Automation in Pharmacovigilance: A Double-Edged Sword
    November 15, 2023
    What Does Science Say About Modern Health Practices?
    November 12, 2023
  • Medical Innovations
  • News
  • Wellness
  • Tech
Search
© 2023 HealthWorks Collective. All Rights Reserved.
Reading: Why the Individual Mandate Is Important
Share
Sign In
Notification Show More
Font ResizerAa
Health Works CollectiveHealth Works Collective
Font ResizerAa
Search
Have an existing account? Sign In
Follow US
  • About
  • Contact
  • Privacy
© 2023 HealthWorks Collective. All Rights Reserved.
Health Works Collective > Policy & Law > Health Reform > Why the Individual Mandate Is Important
BusinessHealth ReformPolicy & LawPublic Health

Why the Individual Mandate Is Important

DavidEWilliams
Last updated: 2014/06/12 at 8:00 AM
DavidEWilliams
Share
4 Min Read
individual mandate
SHARE

individual mandateAs a reasonably young and healthy person, freelance social worker Tammy Boudreaux wasn’t a big believer in health insurance. But then she hurt her finger. She paid out of pocket for emergency room care, but then when the finger didn’t get better she realized she’d have to pay a heck of a lot more for additional medical treatment and rehab.

individual mandateAs a reasonably young and healthy person, freelance social worker Tammy Boudreaux wasn’t a big believer in health insurance. But then she hurt her finger. She paid out of pocket for emergency room care, but then when the finger didn’t get better she realized she’d have to pay a heck of a lot more for additional medical treatment and rehab.

Thanks to Obamacare she was able to get reasonably priced health insurance even though she had a pre-existing condition –in her case a finger that was certain to need surgery and therapy. A week after signing up for an Obamacare plan on the exchange she had surgery followed by rehab and other services.

I’m glad Tammy was able to get insurance and that she’s now a proponent of Obamacare. But let’s face it, Blue Cross isn’t going to do so well if everyone is like Tammy, only signing up once they need services. Blue Cross lost money on Tammy right away. If they’re lucky she’ll be profitable a few years down the road if she sticks with Blue Cross and gets and stays healthy.

For insurance to work, there needs to be a broad pool of customers who cost very little to make up for the few who cost a lot. That’s the purpose of the individual mandate, and it’s a good reason for it.

You can’t wait to buy fire insurance until you smell smoke and you can’t get life insurance after you’ve been diagnosed with a terminal illness. As a result people sometimes have losses for which they can’t make a claim. But health insurance is different. As a society we aren’t –and shouldn’t– be willing to tell people “tough luck” if they didn’t buy health insurance. But it’s not fair to health insurers to make them take all sick people who are sure losses without giving them the benefit of more customers who are healthy.

Republicans have been very slow to lay out the “replace” part of “repeal and replace.” One reason is that while it’s easy to get people riled up about the individual mandate, it’s hard to propose a fiscally responsible alternative without shutting people out of the system. The Republican plan of 2014 calls for insurers to accept customers with pre-existing conditions who have maintained “continuous coverage.” In other words, if someone acts like there’s an individual mandate by buying insurance before they need it, they can continue coverage once they get sick. If not they’re shut out. Doesn’t sound like much of an improvement, does it? 

photo credit: watchingfrogsboil via photopin cc

TAGGED: individual mandate

Sign Up For Daily Newsletter

Be keep up! Get the latest breaking news delivered straight to your inbox.
By signing up, you agree to our Terms of Use and acknowledge the data practices in our Privacy Policy. You may unsubscribe at any time.
DavidEWilliams June 12, 2014 June 12, 2014
Share This Article
Facebook Twitter Copy Link Print
Share
Previous Article Telehealth: Interview with Roy Schoenberg, CEO of American Well
Next Article 5 Benefits of Orthopedic Group Purchasing

Stay Connected

1.5k Followers Like
4.5k Followers Follow
2.8k Followers Pin
136k Subscribers Subscribe

Latest News

get second opinion to avoid medical errors
The Role Of Second Opinions In Medical Errors
Medicare December 10, 2023
mental health technology
Providing Mental Health To Your Local Community with Technology
Mental Health December 10, 2023
urgent care
Urgent Care in Downers Grove: Meeting Community Health Care Needs
Health care December 10, 2023
weight loss
3 Simple Tips for Quick Weight Loss
Weight Loss December 10, 2023

You Might also Like

get second opinion to avoid medical errors
Medicare

The Role Of Second Opinions In Medical Errors

December 10, 2023
urgent care
Health care

Urgent Care in Downers Grove: Meeting Community Health Care Needs

December 10, 2023
AI in pharmaceutical industry
Pharmaceuticals

Automation in Pharmacovigilance: A Double-Edged Sword

November 15, 2023
Modern Health Practices
Medical Innovations

What Does Science Say About Modern Health Practices?

November 12, 2023
Subscribe

Subscribe to our newsletter to get our newest articles instantly!

Follow US
© 2008-2023 HealthWorks Collective. All Rights Reserved.
  • About
  • Contact
  • Privacy
Welcome Back!

Sign in to your account

Lost your password?