The Cascade Policy Institute, a non-partisan free-market think tank, would like to present information on the economic impacts of increasing health insurance mandates. This question is focused not only the economic consequences, but also on the larger question facing policymakers: are we seeking universal health insurance, or expansive benefit coverage for the few?
- Insurance by definition is designed to provide security against unpredictable risks that a group of individuals share and pay premiums for in the event such a risk may occur. The principles of insurance include that risks covered are unpredictable and unintentional. Insurance is not an effective mechanism to provide maximum coverage to all for every foreseeable event. When predictable and regular costs are billed to insurance, in addition to occurrences for those experiencing an unpredictable risk, the cost of insurance increases — that is, more funds are needed to cover both risks and predicted events. In this case, health insurance in fact appears more as a “health benefits package”.