Sunday, December 2, 2012

Healthcare Insurance And Small Business Mandates

This article argues that small businesses have an economy of scale disadvantage relative to larger corporations.  Consequently, they are less productive and they pay lower wages.  Mandated healthcare insurance, therefore, will increase their cost of labor and lower their profits.  Small businesses would be better off with a single payer healthcare system like that in Canada.  The government collects the premiums through the tax system, and does not put the burden of healthcare insurance on businesses.  Hopefully, the insurance exchanges under ACA will enable smaller businesses with over 50 employees (smaller businesses do not have a mandate) to provide insurance at lower cost. Canada's single payer system would be better for most Americans, but ACA is better than what we had.

No comments:

Post a Comment