And Here's How Employers Are Going To Game The New Health Insurance Regulations


Yesterday we noted how individuals can easily game the system under the new healthcare regulations: you just don’t buy insurance and you pay the penalty.

When you get sick, you buy health insurance. Most likely the maths will work out in your favour.

Here’s how businesses will do it: basically the same way.

Once again, GMU prof Bryan Caplan explains:

While new regs penalise firms that don’t offer insurance, the penalty seems to asymptote to $2000/employee:

Requires employers with 50 or more employees who do not offer coverage to their employees to pay $2,000 annually for each full‐time employee over the first 30 as long as one of their employees receives a tax credit. Precludes waiting periods over 90 days. Requires employers who offer coverage but whose employees receive tax credits to pay $3,000 for each worker receiving a tax credit up to an aggregate cap of $2000 per full‐time employee.

I have a feeling that post-recession jobs are going to be a lot less likely to offer health insurance. 

So basically, to get healthcare passed, they had to set the penalties way too low to be effective. Eventually they’ll have to go up, but in the meantime, free lunch!

Also, we wonder if any companies will pay their employees some part of the difference between the penalty and the insurance in cash. That’d make sense. Not offering insurance could be a big come on for potential hires.

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