The Case Against Mandated Employer-Provided Employee Health Insurance

There are three primary arguments against the imposition of mandated employer-paid health insurance: 1. the policy is highly regressive since the uninsured, typically (though not always) low income, eventually pay for their own health insurance through job loss, depressed wages and erosion of other benefits; 2. the policy is inefficient because it is too blunt to distinguish between those needing and those not needing assistance to purchase health insurance; and, 3. it is unfair to small employers and employees because the policy fails to address the real problems of the insurance market for small businesses, while retaining rigidities that injure both, and substituting a hefty, direct penalty on them, i.e., a tax, in large part because they are small and lack market power. Other arguments, such as driving off-budget massive public expenditures by laundering them through the private sector, are also valid, if more abstract, and less interesting to the daily concerns of small employers.
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