Mandatory Health Insurance Laws – Good and Bad
November 13, 2007
So you thought mandatory health insurance was a good thing, right? You will be shocked to know that mandatory health insurance could cost 10% of the jobs at places where it is implemented.
As these laws go employers in at least 12 states would have to pay a fine if they do now mandatorily provide employed health insurance.On the face of it these laws seem favorable to low wage workers and humane as well. However two economists from Cornell University do not agree.
Since health insurance costs are so steep, employers may have to cut back on hours of work as well as jobs. Towers Perrin estimate that health insurance per person will cost employers $ 7,272 per annum. To recover this cost employers might have to cut back on job hours.
Mandatory health insurance is not such a good thing because many of the “working poor” would earn too much to qualify and benefit from it. Many others would even lose jobs because of it.
The Economic Policy Institute presents another viewpoint on this topic. According to them, prosperity is to be shared. They want to put the cost of providing health insurance on the public sector with all citizens recieving mandatory minimum coverage.
I feel the good often comes with the bad. Mandatory health insurance is a case in point.
Meanwhile the debate rages on.
