Individual mandate: Difference between revisions
Added info on state-level individual mandate changes in 2018 |
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On {{Date|2017-12-22|mdy}}, President [[Donald Trump]] signed the [[Tax Cuts and Jobs Act of 2017]], which reduced the individual mandate penalty to $0. Individuals will not see a penalty starting in 2019. Those with a hardship exemption are not required to achieve coverage. |
On {{Date|2017-12-22|mdy}}, President [[Donald Trump]] signed the [[Tax Cuts and Jobs Act of 2017]], which reduced the individual mandate penalty to $0. Individuals will not see a penalty starting in 2019. Those with a hardship exemption are not required to achieve coverage. |
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In 2018, as a response to the cancellation of the individual mandate on the federal level, a number of states and the [[District of Columbia]] considered legislation to reinstate the individual mandate on the state/local level. As of December 2018, [[Massachusetts]], [[New Jersey]], and the [[District of Columbia]] passed legislation to penalize individuals for not having health insurance starting from 2019. [[Vermont]] also passed similar legislation that would apply to years [[2020]] and onward. Other states that will likely consider similar measures in 2019 are [[Rhode Island]], [[Connecticut]], [[Maryland]], [[Minnesota]], [[California]], [[Washington]], and [[Hawaii]]. |
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[[File:State individual mandate.png|thumb|Individual mandates on the state level ]] |
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==Australia== |
==Australia== |
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In Australia, all states and territories now have legislation that requires home and building owners to install smoke alarms. Thus, if they have not been installed, for example, in older homes and buildings, owners must procure or purchase, and install, smoke alarms.<ref>{{Cite news|url=https://choice.com.au/reviews-and-tests/household/living-and-bedroom/home-safety/buying-guide-smoke-alarms.aspx|title=|last=|first=|date=|work=|access-date=}}</ref>{{Dead link|date=December 2018}} A further example of legal compulsion to buy a good or service is compulsory third-party personal injury insurance in relation to the ownership of a motor vehicle.<ref>{{Cite web|url=https://www.rta.nsw.gov.au/roads/registration/index.html|title=Registration: Find out how to get, renew, transfer or cancel a NSW vehicle registration.|last=|first=|date=|website=|archive-url=|archive-date=|dead-url=|access-date=}}</ref>{{Not in refs|date=December 2018}} |
In Australia, all states and territories now have legislation that requires home and building owners to install smoke alarms. Thus, if they have not been installed, for example, in older homes and buildings, owners must procure or purchase, and install, smoke alarms.<ref>{{Cite news|url=https://choice.com.au/reviews-and-tests/household/living-and-bedroom/home-safety/buying-guide-smoke-alarms.aspx|title=|last=|first=|date=|work=|access-date=}}</ref>{{Dead link|date=December 2018}} A further example of legal compulsion to buy a good or service is compulsory third-party personal injury insurance in relation to the ownership of a motor vehicle.<ref>{{Cite web|url=https://www.rta.nsw.gov.au/roads/registration/index.html|title=Registration: Find out how to get, renew, transfer or cancel a NSW vehicle registration.|last=|first=|date=|website=|archive-url=|archive-date=|dead-url=|access-date=}}</ref>{{Not in refs|date=December 2018}} |
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Revision as of 03:05, 31 December 2018
An individual mandate is a requirement by law for certain persons to purchase or otherwise obtain a good or service.[1]
United States
Militia act
The Militia Acts of 1792, based on the Constitution's militia clause (in addition to its affirmative authorization to raise an army and a navy), would have required every "free able-bodied white male citizen" between the ages of 18 and 45, with a few occupational exceptions, to "provide himself" a weapon and ammunition.[2] (See Conscription.)
The Militia Acts were never federally enforced, so their constitutionality was never litigated.[3]
Seaman relief act
An Act for the relief of sick and disabled seamen, signed into law by President John Adams in 1798, required employers to withhold 20 cents per month from each seaman's pay and turn it over to a Collector of the Federal Treasury when in port, and authorized the President to use the money to pay for "the temporary relief and maintenance of sick or disabled seamen," and to build hospitals to accommodate sick and disabled seamen.[4]
In 2012, Eliot Spitzer credited what he called "spectacular historical reporting by Professor Einer Elhauge," who was employed by the campaign to re-elect President Obama,[5] for finding 18th century legislation that Spitzer and Elhauge called individual mandates.[6][7] However, as it was similar to workers' compensation, Social Security Disability Insurance, and Medicare, there exists some debate as to whether it can be properly called an individual mandate, because it did not require anyone to purchase anything themselves.[8]
Health insurance
2006 Massachusetts health care reform
As part of Massachusetts Governor Mitt Romney's health care reform efforts, Chapter 58 of the Acts of 2006 established a system to require individuals, with a few exceptions, to obtain health insurance.[9]
2010 Patient Protection and Affordable Care Act
In the United States, the Patient Protection and Affordable Care Act signed in 2010 imposed a health insurance mandate which took effect in 2014. Under this law, insurance companies are restricted in their ability to alter insurance rates based on the current health of the individual buying the insurance. Without incentives or a mandate, healthier individuals would tend to opt out of the system, since they make fewer claims and their premiums support the claims of the less-healthy, for the time being. Insurance companies would then raise rates to make up the lost revenue. That further increases the pressure on healthier individuals to opt out of buying health insurance, which will further increase rates, until such a market collapses. Mandated insurance is intended to prevent such a downward spiral.[10]
In 2010, a number of states joined litigation in federal court arguing that Congress did not have the power to pass this law and that power to "regulate" commerce does not include an affirmative power to compel commerce by penalizing inaction.
In 2011, two of four federal appellate courts upheld the individual mandate; a third declared it unconstitutional, and a fourth said the federal Anti-Injunction Act prevents the issue from being decided until taxpayers begin paying penalties in 2015.[11][12][13] In 1994, the Congressional Budget Office issued a report describing an individual mandate to buy insurance as "an unprecedented form of federal action... The government has never required people to buy any good or service as a condition of lawful residence in the United States."[14]
On June 28, 2012, the Supreme Court of the United States upheld the health insurance mandate as a valid tax, in the case of National Federation of Independent Business v. Sebelius and thus within Congress' taxing power, but not under the Necessary and Proper Clause of the Constitution.[15]
On August 30, 2013, final regulations were published in the Federal Register (78 FR 53646),[16] with minor corrections published December 26, 2013 (78 FR 78256).
On December 22, 2017, President Donald Trump signed the Tax Cuts and Jobs Act of 2017, which reduced the individual mandate penalty to $0. Individuals will not see a penalty starting in 2019. Those with a hardship exemption are not required to achieve coverage.
In 2018, as a response to the cancellation of the individual mandate on the federal level, a number of states and the District of Columbia considered legislation to reinstate the individual mandate on the state/local level. As of December 2018, Massachusetts, New Jersey, and the District of Columbia passed legislation to penalize individuals for not having health insurance starting from 2019. Vermont also passed similar legislation that would apply to years 2020 and onward. Other states that will likely consider similar measures in 2019 are Rhode Island, Connecticut, Maryland, Minnesota, California, Washington, and Hawaii.
Australia
In Australia, all states and territories now have legislation that requires home and building owners to install smoke alarms. Thus, if they have not been installed, for example, in older homes and buildings, owners must procure or purchase, and install, smoke alarms.[17][dead link] A further example of legal compulsion to buy a good or service is compulsory third-party personal injury insurance in relation to the ownership of a motor vehicle.[18][failed verification]
See also
References
- ^ Klein, Ezra (June 26, 2012). "George Washington's individual mandates". Washington Post.
- ^ Conason, Joe (2010-03-25). "So George Washington was a socialist, too! If the individual mandate is unconstitutional, how could our first president require every citizen to buy a gun?". Salon.com.
{{cite web}}: Italic or bold markup not allowed in:|publisher=(help) - ^ http://www.slate.com/id/2278063/
- ^ http://memory.loc.gov/cgi-bin/ampage?collId=llsl&fileName=001/llsl001.db&recNum=728
- ^ http://www.law.harvard.edu/faculty/elhauge/cv.php
- ^ http://www.columbian.com/news/2012/may/06/founders-would-like-obamacare/
- ^ Elhauge, Einer. "If Health Insurance Mandates Are Unconstitutional, Why Did the Founding Fathers Back Them?". The New Republic.
{{cite web}}: Italic or bold markup not allowed in:|publisher=(help)
Elhauge, Einer. "A Response to Critics on the Founding Fathers and Health Insurance Mandates". The New Republic.{{cite web}}: Italic or bold markup not allowed in:|publisher=(help)
Elhauge, Einer. "A Further Response to Critics on the Founding Fathers and Insurance Mandates". The New Republic.{{cite web}}: Italic or bold markup not allowed in:|publisher=(help) - ^ http://volokh.com/2010/04/02/an-act-for-the-relief-of-sick-and-disabled-seamen/
- ^ "Session Law, Acts (2006), Chapter 58, An Act Providing Access to Affordable, Quality Accountable Health Care". Massachusetts General Court. Retrieved 26 July 2017.
- ^ Tanner, Michael (2006). Individual Mandates for Health Insurance: Slippery Slope to National Health Care (PDF). Cato Institute.
- ^ Kendall, Brent (August 13, 2011). "Health Overhaul Is Dealt Setback". The Wall Street Journal.
- ^ "Court rejects health mandate". Star Tribune. Retrieved 2018-12-05.
- ^ "Virginia judge rules health care mandate unconstitutional". CNN. December 13, 2010.
- ^ Seelye, Katharine Q. (September 27, 2009). "Court challenge seen in health insurance mandate". The San Francisco Chronicle.
- ^ Roberts Jr., John G. (28 June 2012). "The Supreme Court Decision on Obama's Health Care Law". The New York Times. Retrieved 1 July 2012.
- ^ "Individual Mandate Under ACA" (PDF). Congressional Research Service. March 6, 2014.
- ^ https://choice.com.au/reviews-and-tests/household/living-and-bedroom/home-safety/buying-guide-smoke-alarms.aspx.
{{cite news}}: Missing or empty|title=(help) - ^ "Registration: Find out how to get, renew, transfer or cancel a NSW vehicle registration".
{{cite web}}: Cite has empty unknown parameter:|dead-url=(help)