The Pitfalls of Mandating Health Insurance Coverage

Massachusetts is being celebrated in the press and in some health policy circles for being the first state to pass a law requiring all of its citizens to have health insurance coverage. However, this mandate will likely be more hype than help.

The real impact of the Massachusetts law will be a major expansion of costly public programs such as Medicaid and tax-payer-financed subsidies to help lower-income residents. That may help more people afford coverage, but mandating that they buy it opens the door to widespread government micromanaging of the insurance market, which eliminates competition and innovation in insurance.