Thursday, July 5, 2012 Risk Management and Insurance News
Affordable Care Act Presents New Model for Insurance Mandates by Staff

Mark Browne, professor of risk management and insurance, offered his commentary in a BusinessWeek article looking into the history of insurance mandates in the U.S. and those areas ripe for new mandates. The article comes less than a week after the Supreme Court upheld the Affordable Care Act.

According to the magazine, long-term-care insurance is an obvious candidate among insurance for a mandate: "Currently, people who need nursing home care are advised to spend down their assets until they’re poor enough to qualify for Medicaid. Then the federal government and states jointly cover the cost of care, at an enormous and rising expense." 

Browne suggests that “people with middle-class incomes or better should chip in more against the risk that they’ll require long-term care someday. ‘If something doesn’t change it’s going to be a huge issue for the states and federal government,’ says Browne.

"Are we just responsible for ourselves, or are we a community, and everybody’s responsible for each other?" If it’s the latter, then with the benefit of the safety net comes the responsibility to share in its cost.

According to experts, the Affordable Care Act introduces a new process of telling people to buy insurance coverage against risk and taxing them if they don’t.

Read more.