Briefly, the Bill lets you buy health insurance after you get sick — without a penalty. It's as if this guy was signing up for auto insurance post-crash…
Both the House and Senate versions of the bills end the penalty for those who don't have health insurance. This penalty does 2 things; it financially penalizes those who go without coverage, and it generates funds that help pay for healthcare for others.
What the tax bills DON'T do is change the requirement that insurance companies cover anyone who applies.
Imagine if you were able to buy auto insurance after you crashed. Why would you bother to sign up and pay those premiums if you didn't have to?
By the way, there's a ton of research and historythat shows what a bad idea this is, how much damage it does to insurance markets, and what we can expect.
Folks, this is just ONE example of the "dumb" ideas in this bill, from people who claim to understand how the free market works.
What does this mean for you?
Insurance rates are going to go up.
ABOUT THE AUTHOR
Joe Paduda, the principal of Health Strategy Associates and president of CompPharma, is a nationally recognized work comp expert and speaker with considerable expertise in medical and pharmacy management. Joe consults with managed care organizations, providers, insurers, employers, and private equity firms and conducts an annual payer survey on managing work comp pharmacy. In addition to writing the popular and controversial www.ManagedCareMatters.com, he is a founder and contributor of www.HealthWonkReview.com, a collaborative blog on healthcare policy.
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