The first open enrollment for Obamacare began October 1, 2013. That means we are now in the third enrollment. During that time the law required, under threat of penalty,  that all Americans  (with numerous exceptions) carry health insurance. Millions have ignored that requirement with little consequence.

The law also requires that all comers must be accepted without regard to pre-existing conditions. In other words, wait until you really need coverage and then enroll. To the extent people enroll with exiting health care needs, their costs are subsidized by others in the insured group because late enrollee health care costs generally exceed their premiums, sometimes significantly.

It’s time for a change. Individuals who do not enroll as soon as they are eligible – meaning the next open enrollment in 2016 for currently uninsured – should pay a supplemental penalty premium to offset their adverse selection costs. Or, have a one-time special enrollment during which current rules apply. Thereafter, there is no enrollment past the initial period during which a person becomes eligible without a penalty  

Not fair you say?  Why not?

Part B late enrollment penalty

In most cases, if you don’t sign up for Part B when you’re first eligible, you’ll have to pay a late enrollment penalty for as long as you have Part B. Your monthly premium for Part B may go up 10% for each full 12-month period that you could have had Part B, but didn’t sign up for it. Also, you may have to wait until the General Enrollment Period (from January 1 to March 31) to enroll in Part B, and coverage will start July 1 of that year. Source: Medicare.gov