1. All forms of health insurance reform being seriously considered amount to a gun to the head buy it or else mandate.
2. Understanding point 1, does anyone think this is a good idea?
3. Understanding point 1 and the law of supply and demand, does anyone else realize this will absolutely, positively, 100% guaranteed lead to an increase in the cost of health insurance?
Requiring individuals to purchase health insurance under penalty of a hefty fine will shift the demand curve upwards and thus both the equilibrium price and quantity of health insurance upwards. You can debate over how much of an increase and you can debate over who will pay for the increase, and you can even float the idea of price controls that would force the market to operate at a shortage below equilibrium price, but you cannot debate the law of supply and demand, as true and real as the law of gravity, that such a mandate will increase the equilibrium price and quantity of health insurance.
Disclosure: no positions