On Subsidies and Mandates: A Regulatory Critique of ACA

Journal of Corporation Law, Vol. 36, 2011

Minnesota Legal Studies Research Paper No. 11-18

25 Pages Posted: 8 Apr 2011

See all articles by Amy Monahan

Amy Monahan

University of Minnesota - Twin Cities - School of Law

Date Written: April 6, 2011

Abstract

This symposium essay examines the two interrelated provisions in the Affordable Care Act that are designed to encourage individuals to purchase health insurance: the individual mandate and premium tax credits. It sets aside the constitutional issues raised by the mandate, and instead examines the regulatory structure and likely effect of the subsidies and individual mandate on health insurance purchasing decisions following full implementation of ACA. It compares subsidies and mandates under ACA to those passed as part of Massachusetts’ 2006 health care reform legislation, examining the differing policy choices that the two structures reflect. In particular, the essay analyzes the structures of the subsidies provided to low income individuals and how they differ with respect to the nature of the financial security they provide and the choices they allow individuals to make, and also analyzes the nature of the individual mandate penalties and the extent to which they function to encourage health insurance purchase among taxpayers of differing income levels.

Keywords: Health care reform, individual mandate, premium tax credits

JEL Classification: I18, I38, K34

Suggested Citation

Monahan, Amy, On Subsidies and Mandates: A Regulatory Critique of ACA (April 6, 2011). Journal of Corporation Law, Vol. 36, 2011; Minnesota Legal Studies Research Paper No. 11-18. Available at SSRN: https://ssrn.com/abstract=1804271

Amy Monahan (Contact Author)

University of Minnesota - Twin Cities - School of Law ( email )

229 19th Avenue South
Minneapolis, MN 55455
United States

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