Question

Is the individual mandate important in controlling health care costs? What would you expect to happen if the individual mandate were removed? Explain.

Answer 1

Answer : As per my view, individual mandate is an important in controlling health care costs because of the following reasons :

• As it encourages people to buy a health insurance plan. Mostly healthy people who thinks premium as waste of money should investing in the plan because now it has complusion to submit insurance premium copy with your income tax return.
• It help in reducing health cost as more premium has been collected so in return cost of providing health facility by the government has been reduced.
• Fed government has been benefit such as if healthy person does not buy insurance premium than automatically they have to pay penalty to internal revenue service.
• Health cost premium should be reduced.
• Subsides provdied to health care center by the fed government has been reduced.

If the individual mandate is not complusory than number of individuals without insurance has been increased such as :

• Some healthy people stop buying health insurance because the penalty would stop buying it.
• Healthy people signed up with insurance , premium amount should be increased for the sick people.
• Rising premium would resulted in lower enrollment of healthy people.
• Now government will spend more money on the health cost
• Internal revenue service recieved nothing as penalty has been abolished.
• Health care service become costiler in an economy.

CRUX : The main emphasis is that to increase health care facility so individual mandate is helpful for reducing cost in an economy.