Current Events7 - ineligible for the federal health...

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Current Events: A Health Insurance Mandate With a Choice The new health care bill is forcing individuals to buy insurance. This part of the bill is heavily opposed by many Republicans and Libertarians. President Obama said that he would consider many of the Health Care provisions that republicans wanted in the bill. This was dismissed as Obama made some changes to the bill but did not include any of these provisions. In the bill anyone that did not pay for healthcare would be forced to pay a fine. The reason that Obama gave for the fine was that people that decided not to get insurance would take insurance when they got sick and would be guaranteed insurance under the ban of exclusions for pre-existing conditions. So that people would not take advantage of ban on pre-existing conditions the fine for not being insured was put into the bill. Starr is proposing another way to achieve the same goals. He states that if people are allowed to opt out of the bill without penalty and acknowledge that they would be
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Unformatted text preview: ineligible for the federal health insurance subsidies for a fixed period then this would get rid of the problem of people taking advantage of the ban. During this fixed period, if they decided that they wanted insurance then they would have no guarantee of getting it. The ban on pre-existing conditions would not apply to them. They would face a market much like the one that exists now. Even though this is not a good position to be in this would let the tax payer to make the decision to pay for health insurance. This would relieve the republicans of their worries about the bill. Another approach that Starr proposes is to have the five year opt out period or have the option to keep the option open for buying guaranteed coverage at anytime with a bigger fine. Under the current proposal the penalties would be too low. If someone decides to not pay for insurance, they would still have to pay less than if they paid for insurance.
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This note was uploaded on 07/21/2010 for the course ECO 001 taught by Professor Melkonian during the Spring '10 term at Hofstra University.

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Current Events7 - ineligible for the federal health...

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