USD College Republicans

Tuesday Dec 18, 2007

Health insurance mandates

Good old Greg Mankiw has an excellent post regarding health insurance mandates.
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"The more I think about it, the more I come to the view that a lot of the rhetoric over insurance mandates is overblown. A mandate is only as effective as the penalty backing it up. No one, as far as I know, is ready to make failure to be insured a criminal act punishable by jail time. Instead, if a person fails to follow the mandate, he merely pays a penalty. So the mandate is really just a financial incentive to have insurance."
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He then offers two proposals- a $1000 fine for not having health insurance or a $1000 tax credit for those who have health insurance. This is essentially a financial inventive to get insurance.
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Of course, like Mankiw says, no one- and by this, I mean presidential candidate- who espouse universal health care has proposed that the lack of insurance be a criminal offense.
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-Matt Hittle

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