private market would not otherwise provide that insurance. Also, the government can impose the costs of that

decision on taxpayers or on other buyers of insurance.

The Patient Protection and Affordable Care Act

In March of 2010, President Obama signed into law the Patient Protection and Affordable Care Act (PPACA).

The government started to phase in this highly contentious law over time starting in October of 2013. The goal

of the act is to bring the United States closer to universal coverage. Some of the key features of the plan include:

•

Individual mandate: All individuals, who do not receive health care through their employer or through a

government program (for example, Medicare), were required to have health insurance or pay a fine. The

individual mandate's goal was to reduce the adverse selection problem and keep prices down by requiring

all consumers—even the healthiest ones—to have health insurance. Without the need to guard against
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