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Strong or weak?

March 9th, 2012

By jeremy.engdahl-johnson

Kaiser zeroes in on key dynamics of the new Milliman report about the strength and weakness of the individual mandate, which we blogged about Tuesday. Of particular interest, the Kaiser coverage seizes on the key role that income level will pay in the efficacy of the mandate:

The report finds that “For households with income below 200% [Federal Poverty Level, or FPL], the individual mandate will provide high financial incentive for insurance participation, as remaining or becoming uninsured would be more costly than purchasing insurance…. For households with income between 200% and 300% FPL, the penalty amount becomes significantly smaller relative to out-of-pocket premium amounts because of the premium tax credit subsidy’s decreasing value. The influence of the individual mandate will be very strong for a portion of this income cohort, but less certain for households with income approaching 300% FPL, individuals, and the young.”

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