Why would I be required to buy health insurance?
The last time you checked, buying health insurance was an option, right? You could choose either to purchase coverage or not to purchase coverage. Certainly, for now, that may still be true. But, some healthcare reforms are looking to make it mandatory for you to buy health insurance.
Who would be required to buy health insurance?
There is much talk in some states about creating forms of single payer healthcare systems (See our blog, Feb 14, 2008), where funding from one source ensures that everyone is covered. The flipside to this approach being proposed in other states is that if you are wealthy enough to buy health insurance, then it should be your responsibility to do so and you will be required by law to buy health insurance.
Examples of mandatory health insurance purchase
Rhode Island is typical of those states proposing mandatory medical insurance purchase. (The Boston Globe, Feb 12, 2008) A recent plan put forward by the state's Lt. Gov. Elizabeth Roberts would require:
- Individuals who earn at least $40,480 to purchase insurance
- Families who earn $82,600 to purchase insurance
- Forfeiture of a tax exemption if insurance not purchased
- Businesses with more than 10 employees to offer health insurance
- Annual penalty of $1,000 per worker if insurance not offered by these businesses
Colorado has both the single payer and the mandatory insurance purchase reforms on the table. Colorado's Blue Ribbon Commission for Health Reform this week unveiled recommendations anchored by mandatory health insurance purchase by all Coloradans. (The Pueblo Chieftain, Feb 17, 2008) The key to making such a system work is that health insurance coverage is both accessible and affordable.
Is there an alternative to single payer or mandatory health insurance purchase?
Yes. Florida's Gov. Charlie Crist has put forward initiatives that don't resort to either single payer insurance or mandatory health insurance purchase. (Palm Beach Post, Feb 19, 2008) Instead his proposal calls for the state to negotiate with insurance companies in order to develop new or existing health plans. Among some of the highlights of the Governor's proposals:
- Health plans available to any uninsured resident
- Dependents could be kept on parents' policies until age 30
- Businesses not mandated to offer health insurance
- Remove cap on the number of children granted full Florida KidCare coverage
- All children would be eligible for, and covered by, Florida KidCare
For more information visit Rhode Island Health Insurance, Colorado Health Insurance, Florida Health Insurance, and your state's health insurance.