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Pfizer: A Defensive Play For ObamaCare Ruling
Actually, the opposite is true: If the Supreme Court just rules the individual mandate unconstitutional and leaves the rest of the law in place, it would be terrible for insurance companies. Because the pre-existing condition ban would remain in place, without the requirement of buying insurance, people would just wait until they get sick to purchase insurance. Healthy people would drop out of the market, premiums would skyrocket because you'd essentially have the sick subsidizing the sick, which would in turn make more healthy people stop buying insurance until they too get sick. Basically, insurance companies would go bankrupt. I don't expect Obama to repeal his own law without substantial concessions on the part of the insurance industry, who will have no leverage because the current law w/o the mandate would be so damaging.
On a side note, the argument that the mandate charges you for breathing is ridiculous. Everyone is part of the health care market, the question is who pays for free riders: the individual, insurance companies or government. Prior to health care reform, it was the government. After health care reform with the mandate it was individuals; and health care reform without the mandate puts it on insurance companies.
Jun 8 06:02 PM
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