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Insurance Professor Analyzes the PPACA Mandate

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The U.S. Supreme Court recently ruled that Congress has the authority to impose a tax on individuals who fail to own a minimum amount of health insurance starting in 2012 — and a health insurance professor says that might be a good thing.

The “individual mandate” provision in the Patient Protection and Affordable Care Act of 2010 (PPACA) will require individuals with incomes over a certain level and no religious objections to have health coverage to have coverage or else pay a tax.

Many health insurers have argued that imposing a tough mandate will be essential to any successful effort to offer coverage on a guaranteed issue basis without leading bad risks to flood into the health insurance system and good risks to pour out.

Arthur Tacchino, an assistant professor of health insurance at the American College, a nonprofit financial services school, recently appeared on The Wealth Channel to tell retirement advisors and other financial advisors why he thinks the mandate could prove to be helpful.