3) And a final practical remark: Young and healthy people may make the financial decision to skip insurance and pay the penalty/tax instead. Then, on the day they are diagnosed or injured, they can obtain insurance knowing that they can’t be refused for a pre-existing condition and that their premiums cannot reflect their newly acquired disease or injury. Meanwhile, as Ann Althouse explained well in her blog, the penalty/tax goes to the IRS and not the insurance companies, so they will not be compensated for those who opt not to observe the mandate. And when those folks do become insured the insurance companies will not be able to collect premiums commensurate with the risks they are forced to insure. Thus, over time, either the penalties will rise considerably and the funds used to prop up the insurance companies, or more probably, the insurance companies will cease offering policies altogether. This will then raise a clamor for single payer health insurance.
Was this a bug or a feature? Were the proponents aware of this potential and thus extremely clever, or was it just dumb luck? Inquiring minds want to know.
We're screwed.