Young People Are Not Really That Important to the ACA

By: Wednesday December 18, 2013 6:00 am

There is this myth that if young people don’t sign up on the Affordable Care Act exchanges the whole program would enter a death spiral. Since the law allows old people to be charged three times more than young people the age of the risk pool is not nearly as important as the relative health. [...]

There Will Be No Insurance Death Spiral

By: Wednesday November 13, 2013 2:09 am

The law doesn’t “unravel” if young people refuse to sign up, it just ends up somewhat more costly and less effective than the administration hoped. Of course the second they decided to go with this absurd design they guaranty it was always going to be needlessly wasteful and inefficient.

It’s the Subsidies, Not the Individual Mandate, that Stops the Insurer Death Spiral

By: Tuesday March 27, 2012 9:36 am

With the Supreme Court hearing argument on the constitutionality of the individual mandate, some of its defenders are claiming it must exist to stop the so called “death spiral” in health insurance.  In reality only the premium subsidies, not the mandate per se, can actually stop such a theoretical event. The idea behind the death [...]

Study: ACA Would Still Significantly Expand Coverage Without Individual Mandate

By: Thursday October 27, 2011 2:58 pm

Despite the widely cited claim that eliminating the mandate would cause a premium death spiral, with only the sickest buying coverage and everyone else dropping coverage, there is no solid real-world data showing this does happen in places with guaranteed issue.

Health Care Reform: Individual Mandate Will Have Little Effect on What People Pay on the Exchange

By: Saturday December 18, 2010 6:15 am

If you are an individual without employer-provided health insurance that plans to get insurance on the exchange, the existence of the individual mandate (or lack there of) will likely have little or no impact on what you will pay in premiums. The way the new exchange is designed is as follows: If you are an [...]