Second Essay Assignment due date

You can get five points extra credit if you complete a draft and discuss it with me before it is due. Do not turn in an essay with language errors.

The Affordable Care Act (ACA) included two broad inducements for uncovered households to acquire health insurance in the non-group market. The federal subsidies for premiums are supposed to pull households into the market. The fine levied on uncovered households represented a push. Both provisions were structured to increase insurance coverage while decreasing the effects of adverse selection.

A. Explain the adverse selection problem with respect to non-group health insurance. Why is adverse selection less of a problem for employer-provided insurance?

B. Summarize the initial reasoning presented in this article supporting the mandate (fine) that was part of the ACA. Why was it thought that subsidies for health insurance would not be enough inducement?

C. Consider this article on the recent enrollment gains in the non-group insurance market. According to the article, what were the causes of the enrollment growth?

D. The mandate (fine) was considered an important feature of the ACA for the non-group market. Was it ever actually needed? Defend whichever position you take.