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Obamacare’s Individual Mandate and Tax Credits Are Really, Really Inefficient

Obamacare’s least popular feature is the individual “mandate” to have health insurance. This requirement was the subject of the 2012 lawsuit asserting Obamacare was unconstitutional: Never before had the federal government forced any resident to buy a good or service from a private business.
The people lost that argument. Nevertheless, whether we label the punishment for disobeying the mandate a fine or a tax, it is a very inefficient way to raise money to finance health care.
The IRS also follows the money going in the other direction: Tax credits paid out to insurers which offer policies in Obamacare’s exchanges. Although paid

Read more at The Independent Institute