The plan to repeal and replace Obamacare unveiled by House Republican leaders on Monday orders insurance companies to charge people 30 percent more in premiums for a full year if they did not have insurance for 63 days or more in the previous year.
The sections of the Republican bill that create this mandate on insurance companies are titled: “Continuous Health Insurance Coverage Incentive,” and “Encouraging Continuous Health Insurance Coverage.”
The first subsection of the “Encouraging Continuous Health Insurance Coverage” section is entitled: “Penalty Applied.”
This subsection says insurance companies “shall” impose the penalty.
“[A] health insurance issuer offering health insurance coverage in the individual or small group market shall, in the case of an individual who is an applicable policyholder of such coverage … increase the monthly premium rate otherwise applicable to such individual for such coverage during each month of such period, by an amount determined under paragraph (2),” says the bill.
Paragraph 2 goes on to explain that the “increase” in premiums the government will require is 30 percent over the normal premium for the plan.