Dean Baker on the mandate: "The industry wants the government to force you to pay them money"

http://tpmcafe.talkingpointsmemo.com/2009/12/17/insurance_mandates_what_about_president_obamas_cam/?ref=c1

...everyone should clearly understand where the mandates come from. They are put there at the insistence of the insurance industry. The industry wants the government to force you to pay them money and they have enough pull in Congress to get their way.

To be clear, there is a real logic to a mandate. If we prevent insurers from turning people down based on pre-existing conditions or even charging them higher rates, then there will be an enormous incentive for healthy people to remain uninsured. They could avoid paying for insurance until they actually develop a health problem that requires costly care. Then they could buy into the system and leave the insurers with a big bill.

In this scenario, the insurance market quickly breaks down. Only the very sick ever sign up for insurance, costing the industry much more than they collect in premiums. This is the reason for the mandate. It prevents this process of adverse selection where only the sickest actually get insurance.

Everyone knows that we will have to come back to address many issues in the health care system. We can leave the mandate for another day. This would just be going back to President Obama's position in the primaries. His argument made sense back then and it makes sense today.

It may not be possible to get a bill through Congress without the mandates, but everyone should clearly understand where the mandates come from. They are put there at the insistence of the insurance industry. The industry wants the government to force you to pay them money and they have enough pull in Congress to get their way.