GOP’s repeal of insurance mandate could backfire
One of the main reasons
"There is no doubt whatsoever that premiums in the individual insurance market would go up," said
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
The CBO estimated this week that about 16 million people would become uninsured if the coverage requirement is repealed. Without the penalty, healthier people and those juggling tight household budgets might decide to take a chance and drop coverage.
The penalty for going without coverage last year was the greater of
Repeal of the penalty is the centerpiece of the
"I've told everybody this cannot be the final product," said Sen.
"If you passed it as a stand-alone proposition it would destroy the insurance markets and we would own the failure of Obamacare," Graham added.
The health insurance industry is opposing the provision.
Ten governors — five
The unpopular penalty and coverage requirement were intended to nudge healthy people into the insurance market. They are modeled on an approach that
Nonetheless, previous Republican health bills have recognized the importance of having some kind of penalty for people who don't maintain their coverage. Proposals have ranged from a surcharge on premiums to waiting periods. Something like that would likely be part of any final House-Senate legislation.
Those ideas are also unpopular with Americans. A recent AP-NORC poll found that 72 percent would oppose a six-month waiting period, and 67 percent would oppose a surcharge on people who had a break in coverage.
Associated Press Writer


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