Senate tries to avoid 'death spiral' with new ACA revisions

After unveiling the original replacement bill for the Affordable Care Act, Senate Republicans have adjusted their strategy to stabilize the individual insurance market. In the original draft, insurance companies were required to offer everyone coverage, including individuals living with pre-existing conditions. But people were not required to purchase insurance, meaning healthy people go without having to pay monthly insurance premiums. Critics refer to this as a 'death spiral' because without healthy customers making those regular payments, the companies would have to drive up prices and risk losing customers. Senate Republicans decided to implement penalties on people who refuse to maintain their insurance within lapses of 63 days a year. Those people will be locked out of purchasing insurance for a six-month period the following year.