Originally Posted by
Sam Odom
If mandate is killed how does ObamaCare get funded ? Keep in mind appropriations must start in the House
The individual mandate isn't what funds the Affordable Care Act, the tax penalties for people who forgo insurance are minor in the grand scheme of the ACA. The individual mandate is important because it allows insurance companies to continue to earn money while providing the real benefits of the Affordable Care Act, guaranteed issue and community rating(the Medicaid expansion and tax credits would still exist to allow more people to be insured if the individual mandate is struck down, but obviously not if the Medicaid expansion is shot down, which is also an issue in the case, those benefits are partially paid for through a medical device tax, among other things).
The real problem with overturning the individual mandate and not overturning guaranteed issue and community rating is that if guaranteed issue exists without the individual mandate, no one has any incentive to obtain coverage prior to getting sick, so people, who are guaranteed coverage at the point of service will wait to get insurance until when they need it, effectively killing the private health insurance market. Insurance companies in that scenario would still be allowed to employ reasonable waiting periods for coverage, but as long as you could wait the proscribed period you could continue to free load until you got sick, that is to say unless you required emergency care, in which case the public would still foot the bill for you much as they do now.
Oh and in case you were wondering. Don't hold your breath if you think overturning the Affordable Care Act is going to somehow lead to less government spending. Here's what a Republican Congressman said on just that issue two days ago,
""If the Supreme Court strikes down Obamacare, I would certainly support using the savings to replace the cuts contained in the FY 2013 Obama budget. I believe that most GOP Defense appropriators and House Armed Services Committee members would feel the same way," said Rep. Tom Cole (R-Okla), who sits on the House Defense Appropriations Subcommittee."