Barrow said the mandate has two perverse incentives: It encourages small businesses not to grow beyond the 50-employee threshold when the mandate kicks in, and the penalty — $2,000 per year per employee — is lower than the cost of providing the generous healthcare coverage mandated under the law.
Still, the mandate is a centerpiece of the healthcare reform law and is unlikely to go anywhere in the Democratic-controlled Senate.
Rep. Charles BoustanyCharles William BoustanyFormer lawmakers call on leadership to focus on unity Partial disengagement based on democratic characteristics: A new era of US-China economic relations Lobbying world MORE (R-La.) acknowledged that the legislation isn’t paid for and would add to the deficit. But he said the “onerous nature” of the mandate in terms of disruption to businesses “outweighs” its impact on the government’s bottom line.
“We can solve the deficit issue doing other, bigger things,” Boustany told The Hill. “None of this is in place yet so now’s the time to repeal it.”
Boustany also said that House Republicans have yet to decide whether to advance the bill as a stand-alone measure or as part of a broader jobs package.
“We wanted to get the bill out there as a marker,” he said, “probably [as] part of a bigger package.”