Supreme Court asked to hear individual medical insurance mandate « Health Insurance Advisory

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new healthcare reform lawThe new healthcare law, called the Patient Protection and Affordable Care Act (PPACA), represents comprehensive healthcare reform legislation signed into law on March 23, 2010. It contains numerous provisions designed to protect consumers and promote low cost medical insurance, including many new taxes to pay for the cost.

In this section of the site, you can also obtain the following information specific to your state: available medical insurance options, efforts to regulate medical insurance premiums, healthcare, the individual medical insurance marketplace and the new healthcare law.

Our objective is to help Americans make sense of the new healthcare law by explaining key provisions in plain English and assisting individuals, families and the self-employed in using this information to find and secure affordable medical insurance.

Supreme Court asked to hear individual medical insurance mandate

Author: Pete S - Sr. Staff Writer | Oct 04 2011 | Individual Mandate - New Healthcare Law

The cornerstone of the new healthcare law, the requirement that all Americans buy a medical insurance plan or pay a fine, is facing uncertainty. This provision, called the “individual medical insurance mandate” takes effect on January 2014 unless the Supreme Court rules it unconstitutional or it is repealed following next November’s presidential election.

The Obama administration recently filed an appeal with the Supreme Court asking them to back the legislation. On the same day, 26 states and a major business group urged the justices to strike down the new healthcare law, which would have a far-reaching impact on future healthcare coverage for Americans and employer costs.

The administration and the opponents of the law called for an expedited ruling by the high court to resolve uncertainty affecting the federal government, states and employers. The 26 states and National Federation of Independent Business argued in their appeals the entire healthcare reform law should be invalidated because Congress exceeded its powers requiring Americans buy a medical insurance plan or pay a penalty.

It is expected the case will likely be decided in the Supreme Court’s upcoming term which begins next week and lasts through June 2012. A ruling is likely in the midst of the campaign for the November 2012 elections.

If the “individual medical insurance mandate” is found unconstitutional, then the current practice of underwriting applicants based on their health status for an individual health insurance plan will likely continue. As a result, individuals with pre existing health conditions will not qualify for coverage. Why? Without the requirement that all Americans purchase medical insurance, there is no spread of risk. This means that less healthy individuals who need medical insurance will buy it, while more healthy individuals may not. The health insurance industry calls this “adverse selection.” Without everyone paying premiums, the private health insurance marketplace as we know it will likely dry up if carriers are required to cover all individuals regardless of their health status.

Perhaps the new government Pre existing Condition Health Insurance Plan which is designed to provide individuals with existing health conditions access to affordable medical insurance, may play a role beyond January 1, 2014?

If the “individual medical insurance mandate” is upheld, then medical insurance will probably no longer be affordable. Premiums will likely increase to cover the added risk, even though more individuals are paying premiums. Additionally, premiums will also likely increase to pay for the added cost of “Essential Benefits,” such as maternity that are mandated on January 1, 2014. According to health insurance industry sources, if you think medical insurance is not affordable today, we could be in for a rude awakening.

For low cost medical insurance visit healthinsuranceadvisory.org. You will find a wide assortment of health insurance, such as high deductible health plans and Health Saving Accounts. Our online medical insurance quotes make it easy to shop and compare individual medical insurance plans and self employed medical insurance from top health insurance companies in your state. If you need assistance with learning your medical insurance options, such as COBRA Continuation and HIPAA Portability, we can help you too!

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