Definition of Individual Mandate



What does the term "individual mandate" mean? What is meant by "individual mandate"?

An "individual mandate" occurs when a law requires that certain people purchase or obtain a good or service.

Obamacare, aka the Patient Protection and Affordable Care Act, contains an "individual mandate". This mandate requires "individuals not covered by employer or government-sponsored insurance plans to maintain minimal essential health insurance coverage or pay a penalty unless exempted for religious beliefs or financial hardship."

Definition of Individual Mandate - Financial DictionaryThis is the very definition of an "individual mandate", as certain people are being forced to maintain "minimal essential health insurance coverage" or else pay a penalty.

The issue of the constitutionality of the "individual mandate" went all the way to the Supreme Court. Was the individual mandate constitutional? The Supreme Court ruled that the mandate was a tax and therefore fell under Congress' taxing authority.

A fictional example of an individual mandate? A government requiring all of its citizens under the age of 65 to purchase and maintain a rifle.

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