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Because the Affordable Care Act itself has not been repealed, insurance companies will continue to offer their existing plans.This ensures a degree of stability in the health insurance marketplace.Analysts refer to this possible chain of events as the Obamacare “death spiral”.The Obamacare penalty has been politically divisive since its creation.Earlier this year, Congress passed a tax law repealing the individual mandate.This means that you will no longer have to pay a fine to the federal government if you choose to go without health insurance, starting in 2019.However, some states – mostly Democratic – did not share the same reaction, acting to propose their own individual mandates. In 2015, roughly 6.5 million Americans paid an average of 0 in tax penalties for not carrying health insurance.
Since this controversial law is a mandate, or requirement, for every person, it’s also known as the individual mandate.Republicans generally argue that the law puts lower-income individuals at a financial disadvantage.Democrats typically insist that the mandate encourages all individuals – healthy or sick – to carry health insurance.The Congressional Budget Office has estimated that 13 million people nationwide will go uninsured without the individual mandate.If individuals only enroll in health insurance when they fall ill, premium costs will increase for everyone, causing even fewer people to buy insurance.
Though all states are considering an individual mandate in some capacity, residents of these states are more likely to face a penalty if they do not have health insurance at some point after 2019.