Required healthcare: good or bad?

October 9, 2009

As of right now, the healthcare reform plan that is being proposed by the Senate Finance Committee requires that everyone must have health insurance. If you choose not to have health insurance you are required to pay a $950 annual fine. A recent article in Forbes, pokes a very large hole in the logic behind this requirement.

With the new plan, one of the biggest concerns is discrimination from insurance companies against those who are ill. Because of this, if the new plan is passed, no matter what your condition, you will receive insurance at a standard rate. Insurance companies will no longer be able to discriminate against preexisting conditions or charge higher rates to those who may require expensive medical treatment.

Now, here is problem, if you are a healthy young adult and you know that you can receive coverage whenever you would like, no matter what your condition, why would you buy coverage? Young adults will be able to pay the $950 annual fine and pay out of pocket for any minor medical visits. Then, when a major medical issue comes up, they can start up coverage and begin paying premiums so that they can receive treatment. This still leaves someone vulnerable to economic devastation in the event of a medical emergency and no coverage is in place but as shown in Massachusetts, people are willing to take on this risk.

Massachusetts already put a plan like this in place in which they did see a drop in the amount of people uninsured but they saw an increase in cost. With our nation being in the worst economic crisis since the depression, a cost increase is not what the public is looking for!

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