FRONT PAGE CONTRIBUTOR
Health Care Bill Fact of the Day: Providing Businesses With an Incentive to End Employer-Sponsored Health Insurance
The Senate Health, Education, Labor, and Pensions Committee’s “Affordable Health Choices Act” contains an “employer mandate,” or a legal requirement that all American businesses with 25 or more employees offer health insurance to their workers.
The penalty for failing to comply with this mandate to offer employees health insurance is a $750 fine per full time worker per year.
In 2008, employer-provided insurance policies averaged $4,704 a year for individuals and $12,680 for families, according to the Kaiser Family Foundation (p. 2 here). This means employers would be able to save $4,000 per worker (or $12,000 per family) by ending their employee health benefit programs and simply paying the federal government the fine.
Source: Senate HELP Committee bill fact sheet, pp. 7-8.