key term - Individual mandate

Definition

An individual mandate is a requirement by law for all individuals to purchase or otherwise obtain a minimum level of health insurance. This policy aims to reduce the number of uninsured citizens and spread the financial risk across a larger pool.

Related terms

Health Insurance Exchange: A marketplace set up by the government where individuals can compare and purchase insurance plans.

Universal Healthcare:

A system that provides medical services to all residents, typically funded through taxation.

Risk Pool: The group of individuals whose medical costs are combined to calculate premiums or insurance rates; a larger pool usually leads to more stable prices