Adam Solander Quoted in “States Might Require Health Insurance”

SHRM.org

Adam C. Solander, Member of the Firm in the Health Care and Life Sciences practice, in the firm’s Washington, DC, office, was quoted in SHRM.org, in “States Might Require Health Insurance,” by Lisa Nagele-Piazza.

Following is an excerpt:

The Affordable Care Act’s (ACA’s) individual mandate to buy health insurance was effectively repealed by federal tax legislation in December 2017. Now some state lawmakers want to require residents to purchase insurance to help mitigate the potential impact of the repeal.

The individual mandate required most Americans to obtain ACA-compliant health coverage or face tax penalties so that more healthy people would have insurance and balance the costs associated with individuals who are ill. The 2017 tax act, however, will reduce the penalty to zero starting in 2019.

That means fewer people—13 million fewer by 2027—will buy insurance, making insurance more expensive for those who do purchase coverage. The main concern of state legislatures is that the Congressional Budget Office has estimated that this will increase marketplace premiums by 10 percent for most years, said Adam Solander, an attorney with Epstein Becker & Green in Washington, D.C. …

State individual mandate proposals can take a number of forms, Solander said. The Massachusetts individual mandate is a state income tax penalty that is equal to 50 percent of the least costly qualifying insurance product available to the individual.

“One complicating factor is that several states do not have state income tax, and thus income tax penalties are not possible,” Solander noted.