In my last post, I came across a question that I found interesting, so I thought I’d turn it into a post.
Right now, Republicans are attempting to dismantle the Affordable Care Act with legal action claiming that it’s unconstitutional for the government to require people to purchase health care.
Of course the reason for this mandate is because health insurance companies have made it clear that when healthy people don’t buy health insurance, the insurance companies can’t afford to pay the medical bills of the unhealthy participants. It’s especially problematic when the law now longer allows exclusions for pre-existing conditions.
Of course the biggest problem is when these non-contributers get sick and then go to the emergency room to receive free care. In these situations, those who pay for health insurance subsidize those who don’t, and it raises costs for everyone.
Now, Republicans are suggesting that we switch to a cafeteria plan for Medicare. In this situation, the government will pay a set subsidy, and the burden of increased health insurance costs will fall onto the senior. I certainly understand that many of you have so much faith in free market that you believe that the subsidy will always be enough to pay for the insurance. However, similar programs so far haven’t done so. According to an NPR bit, costs in such plans go up higher than in Medicare.
So let’s just agree that it’s possible that the cost of the plans could go higher than the subsidy. In this case, would the seniors be required to purchase Medicare? And if so, how will Republicans argue this legally?