I believe it is fair to say that most people are aware the House of Representatives has passed a bill for our nation’s health care reform; however, the questions remain: how will the Senate respond to the idea of mandating individuals to purchase health insurance, and what is the consequence if they opt out of such a measure?

The effectiveness of the ongoing health care reform will significantly rely on how all components of the reform function together. A reform that requires insurance carriers to provide coverage for individuals regardless of their pre-existing conditions, yet does not require people to purchase the insurance, is purely counterproductive. It goes against the very principle that insurance is based upon; specifically, insurance relies on pooling the resources of a large group to pay for the losses of a smaller group. If only high-risk individuals purchase health insurance then the cost will undoubtedly increase for everyone in years to follow. The only way to protect against the anticipated losses will be to increase the premiums. However, if there is an adequate amount of low-risk individuals paying into the system, there will be more than enough money to offset the medical expenses of those people who truly need care.

If the Senate decides upon eliminating the individual mandate, or does not implement a mandate strong enough to encourage people to buy insurance, then the overall goal of providing affordable health insurance for every American will be unobtainable. To have a health care reform that works, not only will every insurance carrier need to provide coverage, but every American will need to participate in the exchange. Again, these ideas are all derived from the basic laws that allow all types of insurance to function efficiently.