Healthcare

The Employer Mandate

 

Several years ago, I wrote an article supporting an employer mandate as the least objectionable way to expand health care coverage in America.  Small business owners roundly disparaged me.  They could not afford it they claimed. 

Did I say 8%?

Did I say 8%?

Indeed, it would be a financial burden, but given everyone would have the same obligation I argued, costs go up for everyone and thus no one player is disadvantaged.  In lieu of that, others argued that it would be better to have a government plan.  However, said I, to do that you would have to pay for it and by my calculation that would be about 8% of payroll and once that was in place the employer would lose all control over future costs.  Now, given that health care costs typically rise much faster than wages, it is not hard to see that with pay going up say 3 to 3.5% a year and health care going up at least twice that rate, the 8% would quickly be inadequate. 

To my amazement and in confirmation of my considerable prognostication skills (hey, I sound like Rush), the current version of the House Tri Committee health care reform legislation requires employers to offer health benefits or pay an 8% payroll tax

Pay with some control or pay with no control over future costs, take your choice.

Advertisements

Categories: Healthcare

What's your opinion on this post? Readers would like your point of view.

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s