Health Reform and Cost Shifting

An editorial published by the Wall Street Journal on March 11, 2011, argues that the government's case for an individual mandate is faulty. The authors argue the "hidden tax" on people with health insurance is greatly overstated. Their support is a study by John Holahan and Jack Hadley, "Covering the Uninsured How Much Would It Cost?" Holahan and Hadley, disagree with the authors' interpretation of their research, however. They contend the individual mandate will reduce government payments for uncompensated care, which will translate into lower taxes paid by people with private insurance, even if their insurance premiums don't decrease.