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Commercial health plans need individual mandate
Nobody would be surprised to learn that commercial health plans are thrilled that health reform proposals might demand that all Americans buy health insurance. But what some might not have guessed is that this isn't a gift for health plans, it's a necessity, if the industry wants to stay strong and healthy.
Between 2000 and 2007, the customer rolls for private insurance have shrunk by about 9 million lives. What's more, as 79 million baby boomers retire in 2011 and become eligible for Medicare, they'll stop needing commercial plans, which can only make things worse.
On the other hand, if the federal government demands that everyone buy private insurance, health plans will see a near-immediate inflow of millions of customers.
Still, proposals that include both private insurance mandates and a public insurance option are still on the table, the latter of which private insurance companies fear could easily morph into a single-payer system. They're lobbying vigorously to avoid this, of course, but everything's still up for debate.
To learn more about this issue:
- read this Los Angeles Times piece
Related Articles:
MA exempts 20 percent of uninsured from mandate
IL governor floats universal coverage plan
AHIP conditionally endorses coverage for pre-existing conditions
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