Employers Will Escape Obamacare-Sized Rate Hikes In 2018

August 9, 2017

The National Business Group on Health said Tuesday the percentage increase large companies will see next year is similar to 5% cost increases employers have experienced for five years. In its annual survey of large employers, NBGH says per employee costs are projected to increase 5% to $14,156 in 2018 compared to $13,482 per employee this year . Since employers generally cover about 70% of worker costs, employees’ 30% share next year will be nearly $4,400, which includes premium and out-of-pocket expenses

Source: Employers Will Escape Obamacare-Sized Rate Hikes In 2018

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Cyclical Job Ladders by Firm Size and Firm Wage by John Haltiwanger, Henry R. Hyatt, Lisa Kahn, Erika McEntarfer :: SSRN

June 24, 2017

We study whether workers progress up firm wage and size job ladders, and the cyclicality of this movement. Search theory predicts that workers should flow towards larger, higher paying firms. However, we see little evidence of a firm size ladder, partly because small, young firms poach workers from all other businesses. In contrast, we find strong evidence of a firm wage ladder that is highly procyclical. During the Great Recession, this firm wage ladder collapsed, with net worker reallocation to higher wage firms falling to zero. The earnings consequences from this lack of upward progression are sizable.

Source: Cyclical Job Ladders by Firm Size and Firm Wage by John Haltiwanger, Henry R. Hyatt, Lisa Kahn, Erika McEntarfer :: SSRN


Destructive Creation at Work: How Financial Distress Spurs Entrepreneurship by Tania Babina :: SSRN

March 6, 2017

Using US Census employer-employee matched data, I show that employer financial distress accelerates the exit of employees to found start-ups. This effect is particularly evident when distressed firms are less able to enforce contracts restricting employee mobility into competing firms. Entrepreneurs exiting financially distressed employers earn higher wages prior to the exit and after founding start-ups, compared to entrepreneurs exiting non-distressed firms. Consistent with distressed firms losing higher-quality workers, their start-ups have higher average employment and payroll growth. The results suggest that the social costs of distress might be lower than the private costs to financially distressed firms.

Source: Destructive Creation at Work: How Financial Distress Spurs Entrepreneurship by Tania Babina :: SSRN


Massachusetts Governor Hiking Taxes To Rescue Failed Health Reform

January 27, 2017

Governor Charlie Baker of Massachusetts has proposed a tax of $2,000 per worker on businesses which do not offer health coverage to employees who become dependent on Medicaid.

Source: Massachusetts Governor Hiking Taxes To Rescue Failed Health Reform


Massachusetts Governor to Pitch Health-Insurance Penalty for Employers – WSJ

January 25, 2017

The first state in the nation to require residents to carry health insurance is grappling with escalating Medicaid rolls, but a fix floated by Massachusetts’ Republican governor is drawing pushback from employers.

Gov. Charlie Baker will propose in his annual budget on Wednesday a $2,000 penalty per worker on businesses that don’t shoulder enough of the health-insurance cost. The governor is aiming to solve what he sees as a flaw in the national health law: Medicaid ends up being more appealing to low-income workers than insurance offered by employers, raising the costs for the state.

Source: Massachusetts Governor to Pitch Health-Insurance Penalty for Employers – WSJ


Update: Obamacare’s Impact on Small Business Wages and Employment – AAF

January 23, 2017

Research from the American Action Forum (AAF) finds regulations from the Affordable Care Act (ACA) are driving up health care premiums and are costing small business employees at least $19 billion in lost wages annually. These figures varied by state, but in 2015 the ACA cost year-round workers $2,095, $2,134, and $2,260 in Ohio, New York, and North Dakota, respectively. Premium increases, a prospect regulators predicted when issuing the first ACA regulations, also significantly diminished the number of business establishments and jobs nationwide. Across the country, small businesses (20-99 workers) lost 295,030 jobs, 10,130 business establishments, and $4.7 billion in total wage earnings. Florida lost 17,950 jobs; Ohio lost 19,000; Pennsylvania lost 15,680; and Texas lost 28,010 jobs due to higher sensitivity to rising health care premiums and the ACA.

Source: Update: Obamacare’s Impact on Small Business Wages and Employment – AAF


JRG Health Sector Analysis: Health Jobs Explode Versus Non-Health Jobs

January 6, 2017

Health jobs exploded in this morning’s jobs report, growing more than three times faster than non-health jobs (0.28 percent versus 0.09 percent). With 43,000 jobs added, health services accounted for over one quarter of 156,000 new nonfarm civilian jobs.

The disproportionately high share of job growth in health services is a deliberate outcome of Obamacare. While this trend persists, it will become increasingly hard to carry out reforms that will improve productivity in the delivery of care.

Source: JRG Health Sector Analysis: Health Jobs Explode Versus Non-Health Jobs