Obamacare Sign-Ups Could Get A Bump As Higher Penalties Kick In
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NPR's covered a recent òòò½Íø Review article in a story about rising penalties for failing to purchase insurance under the Affordable Care Act. In Adverse Selection and an Individual Mandate: When Theory Meets Practice, the authors study the Massachusetts health reform experience in the mid-2000s. They find that the introduction of a penalty successfully combatted adverse selection in the state's health insurance markets, and that a higher penalty would have been even better.