If Mandate Falls, What About Exchanges?

[HealthGuy]

Got to thinking today, if the Supremes throw out the mandate but keep most everything else in Obamacrap, including the state mandated exchanges then:

1. Do all new individual health plans have to be sold through state exchanges?

2. Or will there still be an outside, independent individual health market outside the exchange if the individual mandate is chucked?

What says the experts? !
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Come on somebody give HealthGuy an interpretation of the exchanges if the mandate is thrown out only but the rest of the law stands...

 

[somarco]

I am not sure you can draw a straight line, or even a crooked one, between the evil mandate and exchanges. Regardless, one of the biggest challenges to Obamacare (beyond legal) is . . . funding.

The feds have all but indicated they don't want that job and are trying their best to hand it off to the states.

States don't have the money to establish exchanges OR expand Medicaid.

Even Massachusetts, home to RomneyCare, would not be able to fund their "universal" health plan if not for a constant infusion of $8+ billion per year from you and me via the IRS and CMS.

So if the mandate is trashed, and exchanges survive, it may be only in theory unless someone finds a way to make money grow on trees.

 

[HealthGuy]

Great points Bob, anybody else want to chime in...Beyond no money for this crap health plan, can the exchanges be mandatory if the mandate isn't? If the mandate is thrown out, will the only individual health market survive in an exchange, or by default does there need to then be a market outside the exchange in the states, just as there is now? Does the law mandate state exchanges ONLY regardless of the mandate to purchase insurance in the exchange?

 

[Yagents]

Everything will still move forward, it's just the deck chairs will be rearranged a bit to fund it. Remember, the penalty is very small, so it won't have that much affect on the financing, as long as we have ink, our gov't has $$. Most of the funding comes from device taxes, ins co taxes, cadillac taxes, hsa penalties, tanning booths, pharma contributions, etc.

And yes, there will ALWAYS be a private outside market as long as there are still people making over 40k per year, or no single payor. Even then, a private market will exist in a supplementary form.

 

[somarco]

C'mon Bill. Admit it. You voted for and love Obama.

 

[Yagents]

You stumped me. I have no response. Bob 1, Bill 0

 

[HealthGuy]

How can exchanges be mandatory and move forward with no mandate for participation? Makes no sense to me at all when the exchange plans will be like double the market price for health insurance now. What use will an exchange be without a mandate and who would actually buy insurance there? Seems as if the mandate goes out the window, so does the entire health bill, regardless of whether the court strikes down the entire thing or not? What am I missing here, besides there is no money for this subsidized exchange anyway?

 

[Yagents]

You're right. The gov't will become rational after the SCOTUS decision and will only execute rational economic principles, and will NO longer run deficits, or pay for things we cannot afford.

 

[HealthGuy]

YAgent I hear you...but seriously without a mandate the indy market outside the exchange stands as is today right? SOMEBODY TELL ME ITS NOT SO.

 

[somarco]

The gov't will become rational after the SCOTUS decision and will only execute rational economic principles, and will NO longer run deficits, or pay for things we cannot afford.

They may not have any choice. We are not far behind Greece, Spain, Italy and a few others.

The feds now own more US debt than China. The USPS is spending 50% more than it takes in and Congress refuses to let them do what they need to do to survive.

Scott Walker made some tough choices to keep WI afloat but managed to not only save the state millions but keep his job as well. Any politician, regardless of party affiliation, that does not understand it is time for a smaller government that is more friendly towards private industry needs to get a moving van lined up.