How Would State-Based Individual Mandates Affect Health Insurance Coverage and Premium Costs?

How Would State-Based Individual Mandates Affect Health Insurance Coverage and Premium Costs?

Although the Tax Cuts and Jobs Act of 2017 eliminated the financial penalty for ignoring the Affordable Care Act's individual mandate, states looking to encourage health insurance enrollment to ensure that healthcare costs are shared and marketplaces are stabilized can reinstate their own penalties, a report from the Urban Institute finds. The report, How Would State-Based Individual Mandates Affect Health Insurance Coverage and Premium Costs? (18 pages, PDF), provides state-by-state estimates of the impact of adopting an individual mandate for insurance coverage, premiums, and mandate penalty revenues and finds that if all states were to implement an individual mandate, the number of uninsured individuals would fall by 3.9 million in 2019 and by 7.5 million by 2022; that on average marketplace premiums would be 11.8 percent lower in 2019; and that state mandate penalty revenues would amount to $7.4 billion, while demand for uncompensated care would fall by $11.4 billion.