Should People With Only One Health Insurance Option be Exempt From the Individual Mandate’s Tax Penalty? (H.R. 521)

What is H.R. 521?

(Updated March 22, 2018)

This bill would amend the tax code to exempt individuals from the individual mandate to buy health insurance or face a tax penalty if they live in a county with less than two health insurance issuers offering qualified health plans on an exchange. It would apply to all months beginning after its enactment.

Argument in favor

Obamacare has left Americans in many counties across the country with few options — in some cases only one — for buying health insurance. It’s unfair to impose the individual mandate tax penalty on consumers facing a monopoly.

Argument opposed

There shouldn’t be a special exemption to the individual mandate for people living in areas that only have one health insurance provider. They need to buy health insurance from that one plan or pay the tax penalty.

Impact

Health insurance consumers in counties with only one provider offering plans; and the tax code.

Cost of H.R. 521

A CBO cost estimate is unavailable.

Additional Info

In-Depth: Sponsoring Rep. Mark Amodei (R-NV) first introduced the Protection from Insurance Exchange Monopolies Act during the last session of Congress, in the hopes of sparing people living in counties where there are fewer than two health insurers offering plans from Obamacare’s individual mandate tax penalty:

“Despite [former President Obama’s] assurances, Obamacare has delivered nothing more than higher premiums and less choices – with millions of Americans having even fewer choices in 2017. In Nevada, Obamacare will soon be leaving residents in 10 counties with only one choice – choose what Washington says is right for them – or pay the penalty. By allowing people who reside in areas with less than two provider options to be exempt from the individual mandate, our bill provides much needed relief to those who have been left with no alternative. Congress must continue to look for real solutions that give Americans increased access to the care they deserve, and this is an example of Congress taking action.”

This legislation has the support of five cosponsors in the House, all of whom are Republicans.

Of Note: According to the Kaiser Family Foundation, residents of 32 percent of U.S. counties will only have one health insurance choice available to them in 2017, an increase from 7 percent in 2016.

Media:

• Sponsoring Rep. Mark Amodei (R-NV) Press Release (Previous Version)
  
• Association of American Physicians and Surgeons
  
• Las Vegas Review-Journal (Previous Version)