According to PolitiFact, however, while discouraging the buying of labor eliminates jobs, discouraging the selling of labor does not. On this arbitrary distinction, PolitiFact hangs its entire ruling. Without it, they would have to admit that the CBO’s projection that Obamacare will reduce employment by 2.5 million jobs supports Cruz’s statement.
The Incidence of Mandated Health Insurance: Evidence from the Affordable Care Act Dependent Care MandateJanuary 12, 2016
The dependent care mandate is one of the most popular provisions of the 2010 Affordable Care Act (ACA). This provision requires that employer-based insurance plans cover health care expenditures for workers with children 26 years old or younger. While there has been considerable scholarly and policy interest in the effects of this mandate on health insurance coverage among young adults, there has been little scholarly work measuring the costs and incidence of this mandate and who pays the costs of it. In our empirical work, we exploit the fact that some states had dependent care mandates in years prior to the passage of the ACA. Using data from the Survey of Income and Program Participation (SIPP), we find that workers at firms with employer-based coverage – whether or not they have dependent children – experience an annual reduction in wages of approximately $1,200. Our results imply that the marginal costs of mandated employer-based coverage expansions are not entirely borne only by the people whose coverage is expanded by the mandate.
Starting in January, the Affordable Care Act requires businesses with 50 or more full-time-equivalent employees to offer workers health insurance or face penalties that can exceed $2,000 per employee. Ms. Hunter, who has 45 employees, is determined not to cross that threshold. Paying for health insurance would wipe out her company’s profit and the five-figure salary she pays herself from it, she said.“
The margins are not big enough within our industry to support it,” she said. “It’s not that I don’t want to — I love my employees, and I want to do everything I can for them — but the numbers just don’t work.”
How Obamacare Inadvertently Threatens The Financial Health Of Small Businesses, And What States Should Do About It – ForbesNovember 13, 2015
Starting in 2016, push comes to shove for small businesses under the Affordable Care Act, better known as Obamacare. As of January 1, small businesses, broadly defined as firms with 50 to 100 full-time employees, must comply with the ACA’s employer mandate and provide qualified health insurance to their workers or face stiff penalties. But this requirement poses a big threat to the financial stability of small employers—and not for the reasons you might think.
While most large employers — with 500 workers or more — ask employees to complete some sort of health assessment to identify potential risk factors, nearly 60 percent also ask them to prick their fingers for biometric screening, according to a 2015 report by Mercer, a consulting firm. And the number of employers offering financial incentives to complete any of these wellness-related tasks has inched higher: About 56 percent of large employers dangled an incentive in front of their workers last year, the most common being a premium reduction.
About one-third of employers will be hit by the tax in 2018 if they do nothing to change their plans, according to a March survey by Mercer, a benefits consulting firm. By 2022, almost 60 percent will be facing the levy.
“‘Cadillac tax’ is really a misnomer,” said Beth Umland, Mercer’s director of research for health and benefits. “Potentially any employer could be hit by this tax.”
Former Obamacare adviser Jonathan Gruber, in one of the now-infamous videos that emerged late last year, said rising medical costs ensure the Cadillac tax will eventually all but eliminate the break companies get for providing health insurance.
Is health care reform finding its footing—or fatally flawed? MIT economist and Affordable Care Act (ACA) expert Jonathan Gruber and Cato Institute Director of Health Policy Studies Michael Cannon share opposing viewpoints on the current state of reform.