What is mandatory health insurance?

Mandatory health insurance is just what it says, it is mandatory for all citizens to have health insurance. Another term commonly used to define mandatory health insurance is individual mandate. If the citizen does not purchase insurance or receive insurance from perhaps an employer, the citizen can be fined. In the US setup, mandatory health insurance is incorporated into some state laws and the recently enacted federal care reform law which was enacted in 2010.

Insurance in Rockford IL works on the principle that many individuals share in the risk of a common event. This is not just true with health insurance; the principle is applicable to all insurance. When people insure their homes against disaster they pay an annual premium of nowhere near the value of the home. In the event the home burns to the ground, the money paid by the insurance company comes from the premiums made by many insured individuals.

Many people in the US, especially those who are still young; under 30, have elected not to purchase health insurance. This leads to a situation where the older population has insurance in Rockford IL but as they are older, they are more likely to make claims. This situation has led to the price of health insurance coverage being very high, certainly much higher than it need be if all citizens were paying. This is the stance of the proponents of the reform law; if everyone has insurance the cost to everyone will drop.

Mandatory health insurance may broaden the coverage that people opt to buy because they may opt to widen the scope of their coverage rather than subject themselves to penalties. This will drive down the cost of health care because those under 30 who are not buying insurance now will have to subscribe, this widens the base of subscribers. It has been proven that those who do not have health insurance and can’t pay for hospitals, doctors, drugs, etc drive the cost of health care up which in turn has to be borne by those who are insured.

Although citizens of most western countries don’t normally discuss health insurance as their governments do provide it, it is very contentious in the US with many saying the government has no right to decide what people will buy and what they won’t.

With the federal care reform bill now in force you may wish to talk to the professionals. They can help with Medicare Advantage and Part D prescription plans and other insurance in Rockford IL. Click Here for more information.

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