Health Insurance Articles
The Insurance Mandate In The AFA And Health Insurance Rates
2012-01-28
The Affordable Care Act, or AFA, has sparked much controversy in the insurance industry. The premise of this legislation is to put in place health care reform. Part of this reform includes changes in health policy, primarily taxing families who do not have health insurance. Another reform gives subsidies to families and individuals who cannot afford health insurance. This is the insurance mandate included in the AFA that will change health insurance rates. The mandate will cause more and more people to buy health insurance; thus, insurance companies can widen their customer base. The wider the customer base, the lower the health insurance rates. Consumers may view the health insurance mandate in the AFA with mixed reviews.
The AFA will pressure people to either spend money on health insurance or spend it paying a tax. It is only logical for people to invest their money in something that will benefit them. People have always had the choice of whether or not to purchase health insurance; the AFA somewhat limits those options. With the change in this health policy, however, people may pay less than they would before the plan. If many people buy health insurance as a result of the health insurance mandate in the AFA, then insurance companies will have a greater number of customers. Because of this, insurance companies will be able to lower health insurance rates. This new mandate is a win-win situation for both consumers and insurance companies alike.
The reason the health insurance mandate that is a part of the AFA is gaining popularity is because it represents a cut in consumer spending in comparison to the rest of the legislation's mandates. It also presents benefits in the care of the consumers. Because people with health insurance tend to visit the doctor and seek treatment more often than those without health insurance, less money will be spent on treating patients. This represents not only an economical advantage, but an advantage in the health of consumers overall. People can be treated for diseases and treated for them sooner, making their chances of survival greater.
Although some oppose the AFA because it requires a tax on health care, many health insurance companies and consumers support the health care mandate in the AFA because they see its benefits. There is much debate about the advantages and disadvantages of this health care legislation. It is expected that with the AFA, health care rates will go down and the way consumers look at health policy will change. Insurance companies will definitely gain popularity among consumers who want to avoid the tax and consumers may get the care they need but otherwise did not get without health insurance.
