Insurance Mandates

Insurance Mandates

John Doe

Saint Leo University

Insurance Mandates

Insurance mandates came to the forefront with the enactment of the affordable care act. However, insurance mandates long before the passage of The Affordable Care Act. Mandates are part of most insurances policies in existence today and are the cause significant political and public debate.

The Affordable Care Act Mandates

The goal of the Affordable Care Act (ACA) was to give all Americans the access to healthcare at affordable rates. The Affordable Care Act’s)coverage provisions extended health insurance to more Americans than any time in prior history. (Affordable Care Act, 2017) The affordable care act mandated ten categories of health services and health insurance plans must provide to all insured. The ten categories are doctors’ services, inpatient and outpatient hospital care, prescription drug coverage, pregnancy and childbirth, mental health services, and other services. (Essential Benefits, 2017)  

 The Affordable Care Act there are also employer mandates. Employers under The Affordable Care Act’s employer shared the responsibility to provide health insurance to employees.  Applicable large employers (ALE’s) must offer minimum essential coverage that is “affordable” and that provides “minimum value” to their full-time employees and the full-time employee's dependents. Employers that do not provide health insurance are obligated to make an employer shared responsibility payment to the IRS.” A majority of employers did not meet the ALE threshold and are not obligated to participate in the employer mandates. However, many employers that meet the ALE threshold did not want to join in The Affordable Care Act employer mandates and reduced employees hours to part-time, so they did not have to participate. An employer that cut employees hours appears not to have a core value system to care for their employees or communities they serve. Saint Leo's core value of society is to foster a spirit of belonging and interdependence based on mutual trust and respect. (Catholic University, 2017) By not providing employees health care benefits shows that employers have no loyalty to their employees or community as well as the nation that protects the companies ability to exist.

Individual mandates are also a part of The Affordable Care Act. People who can afford insurance are required by law to pay for health insurance. If people can afford insurance and choose not to purchase health insurance, can be required to pay a fee as part of the individual mandate. The fee paid when you file your tax return for the year when you do not have coverage. Individuals showed a lack of integrity as stated in Saint Leo's core of value by not paying for health insurance. The core value of integrity that we should be honest, just, and consistent in word and deeds, and by not paying for the insurance that your family needs does not display integrity. (Catholic University, 2017)

The Affordable Care Act is not a perfect solution to the healthcare crisis in America, but it was a start needed to produce a functional solution. Participation mandates under The Affordable Care Act do not a burden to society but an overall benefit. Society as a whole was already paying for the healthcare of all citizens that did not have healthcare through indigent care or people that did not have health insurance.  The typical uninsured person had half the amount of medical expenditures as the average insured person ($2,443 versus $4,876) in 2013. The cost of to provide healthcare to uninsured individuals was $84.9 billion in 2013.  Uncompensated care includes health care services without a direct source of payment.May 30, 2014. (Uninsured Care, 2014)

Granting a business license does not constitute a benefit conferred by a state at the state's discretion. When a person decides to start a business the result if the company is successful is a benefit to the state. States benefit due to the jobs created and taxes paid to the state. Over 50% of the working population, over 120 million people works in a small business, and the majority of new business created are small businesses. (Surprising Statistics, 2014) States should openly welcome the granting of business license and not treat issuing a business license as a benefit. 

Mandated Automobile Insurance

Insurance is a necessity for all citizens in the United States, and the cost of accidents and mistakes are shared by all users of coverage when insurance claims are filed. Society as a whole benefit from insurance mandates, because most individuals could not afford to pay for the damage to someone car or their vehicle they were at fault for an accident.Automobile accidents are expensive, and the most expensive cost we pay for car crashes is the loss of human lives, which are often followed by costly lawsuits. According to the National Highway Traffic Safety Administration (NHTSA), U.S. motor vehicle crashes cost almost $1 trillion in loss of productivity and loss of life in 2010. (Crashes and Statistics 2017) Most drivers can not afford to cost associated with being at fault in a car accident. Thus automobile insurance must be mandated.  

The right to drive should be considered an absolute right of s state citizens. Citizens can not function in society without the right to drive. Driving a necessity for the success of a state's economy, and states benefit from citizens having the power to drive.  People drive to work every day to generate income to pay taxes. The construction of roads that people drive on creates jobs, and a way is a necessity for the transport of goods and services. Law enforcement is supported by the fines that are imposed upon citizens for traffic violations as well as states and local court systems. In the state of New Jersey in 2015, a total of $405,611,768 was collected tickets issued in the states, which proves that the right to drive is an anchor to a state's economy. (Tickets Last Year, 2016) The power to drive allows each citizen to exercise the Saint Leo core value of personal development. The personal development of every person’s mind, spirit, and body leads to a  balanced life. All of a community must demonstrate their commitment to personal growth to help strengthen the character of our community. (Florida University, 2017)  Driving allows citizens to work, get an education, or enjoy a family vacation, which all key to the personal development of each.

Mandated Workers’ Compensation Insurance

Worker compensation acts were created many workers participate in dangerous employment and are injured on those jobs daily. Under common law employees injured on the job were allowed to sue employers for negligence. Suing and employees were costly and time-consuming, and as a result, the worker's compensations acts were created. (Cheeseman, 2016, pp 516-517). Worker's compensations mandates are a necessity for the privilege of doing business in a state. Before worker's compensations acts were created,  employers mistreated employees after an employee was injured on the job. When an employee was injured on the job before worker compensation insurance existed, those employees were terminated and left to fend for themselves. An employees only choice was to sue the company, and most employees could not afford to pay the legal fees to sue their employer. Worker's compensation insurance has been a benefit to employees and employers. Employers must pay an insurance premium for the mandated worker's compensation insurance, but no longer have to deal with an overindulgence of lawsuits. With the enactment of worker's compensation employees are given a paycheck while recovering from an on the job injury. If an on the job injury prevents a worker from returning to their previous field of work, worker's compensation benefits provide training for a new career that allows an employee to work with accommodation for the injury. (Injured Worker, 2017)