The Dark Side Of Business Health Insurance Mandates
Tuesday Nov 13, 2007The Dark Side Of Business Health Insurance Mandates in Group Health Insurance
Many state and federal lawmakers around the country are backing laws that force employers to provide health insurance for their employees or pay a penalty. But all businesses have bottom lines — money spent one place means resources have to be cut in another.
A report conducted by the Employment Policies Institute concluded that laws requiring employers to provide coverage isn’t always the best idea.
“The cost of providing health insurance is so great that most businesses covered by “pay or play” laws will be forced to cut back on hours and jobs just to stay afloat,” said Jill Jenkins, the chief economist at the Employment Policies Institute.
The report also argues that many workers don’t even qualify for the benefits of the laws because they earn too much income. It also points out that employers are forced to lay off workers because of the high costs of health insurance.
So, will health insurance mandates requiring businesses to provide coverage significantly increase the rate of unemployment?
