Thursday, January 25, 2007

Yes . . . But at What Price?

Businesses are wary of a crop of new state health care proposals to reduce the number of uninsured, fearing the programs will drive up their expenses without solving the problem.

I believe this point has been raised more than once here at InsureBlog.

"Once a statute is on the books it becomes easy to bring up the tax," Shaw said

He added the policy could have unintended consequences such as stalling growth, noting that a company might not want to add a 10th employee if it has to start paying the tax. Moreover, Shaw said companies offering health insurance may drop it because paying the 4 percent payroll tax is cheaper than providing coverage, which would only add to problem of the uninsured.

Fewer employed.

More uninsured.

Is this the plan?


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