The authors contend that, based on their findings, the individual mandate is an essential component of the overall package, working with the Medicaid expansion, insurance exchanges, premium subsidies, and market reforms to achieve the law’s goal of greatly reducing the number of uninsured. The finding that uncompensated care costs are much higher without the mandate suggests that individuals who would be uninsured without the mandate are essentially free riders shifting the costs of their care onto the rest of society.
This paper was prepared by researchers at the Urban Institute as part of the Quick Strike Series.