Individual Mandate

The Individual Mandate is a requirement that most individuals must have health insurance or pay a penalty. It was a key part of the Affordable Care Act in the United States, aimed at increasing the number of insured people and reducing healthcare costs. By encouraging everyone to have insurance, it helps keep premiums lower because more people are sharing the risk and costs of healthcare. This mandate was designed to create a healthier population and ensure financial protections against high medical expenses, although its penalty has been eliminated in some areas since 2019.