Okay, all you health care and economics mavens out there. Does the new Massachusetts universal health insurance plan encourage employers to terminate company-supported health insurance?
Okay, all you health care and economics mavens out there. Does the new Massachusetts universal health insurance plan encourage employers to terminate company-supported health insurance?
Not necessarily. Depending on the workforce employed by the company, the new plan actually penalizes most people more than 300% above the poverty line who apply for coverage under it. Therefore, if a company’s workforce is composed of people above this level, they(the workforce) will have little incentive to support their enrollment in this plan. While the costs could possibly be less expensive on the state sponsored plan (as opposed to the company-supported plan), there are other implicit/explicit costs that employees will notice. From a management perspective, employers will have some incentive to terminate the company-supported insurance, as long as the costs of compensation adjustment (paying employees more salary to compensate for lost value from the company plan) are less than the cost of the plan.
Those are basically the forces I was considering, Boltwan. As long as the state-subsidized insurance is minimally acceptable I doubt there will be a worker revolt—just an effective pay cut. Beware of perverse unforeseen secondary effects!