The American Academy of Actuaries sent a letter to the chairmen and ranking members of two Congressional committees Tuesday arguing a repeal of the individual insurance mandate included in the Republican tax bill could cause premiums to rise.'
The letter was sent to Reps. Kevin Brady, R-Texas, and Richard Neal, D-Mass., of the House Ways and Means Committee and Sens. Orrin Hatch, R-Utah, and Ron Wyden, D-Ore., of the the Senate Finance Committee. It outlines how without an individual mandate encouraging healthier patients to enter the insurance market, these markets will turn into high-risk pools with higher premiums.
The letter also said the mandate repeal could lead to insurer withdrawal from the markets, and it advocated for "strong alternative mechanisms" to offset these repercussions if Congress goes through with the mandate repeal.