Exactly. Zeroing the mandate did cause *some* damage to the indy market, but not nearly as much as feared. Just because the Obama Admin thought it was “vital” in 2012 (mostly to keep carriers from bailing in the early, shaky days) doesn’t mean it’s still “vital” today.
https://twitter.com/cynthiaccox/status/1326162180958543872
2019 premiums (the first year after the penalty was zeroed out) were indeed about $580/year higher specifically due to this reason than the would’ve been otherwise for unsubsidized enrollees...but that’s a fender bender, not a totaled car.
nytimes.com/2018/12/27/opi…
nytimes.com/2018/12/27/opi…
Average premiums went up less than 3% in 2019 (instead of *dropping* ~5% without the zeroing); 0% in 2020 (flat); and are going up just 1% in 2021.
That’s the very definition of a stable market.
That’s the very definition of a stable market.
I’ll also note that 5 states including California have their own mandate penalty now anyway, so from a market POV the mandate penalty is still around for 15% of the individual market.
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