Navigation Links
New Study: Health Insurance Mandates on Employers Hurt Low-Income Employees
Date:11/9/2007

For every 100 newly insured employees under a 'Pay or Play' law, 10 entry-level employees will lose their jobs

WASHINGTON, Nov. 9 /PRNewswire-USNewswire/ -- A new study presented as part of a Cornell University symposium finds that "Pay or Play" laws, which require employers to provide health insurance to their employees or a pay fine, will reduce employment for the least skilled members of the work force.

The study sponsored by the Employment Policies Institute and authored by Cornell University economists Richard Burkhauser and Kosali Simon, uses federal Current Population Survey data to calculate that for every 100 newly insured employees resulting from a "Pay or Play" law, 10 low-wage employees will lose their jobs.

"Pay or Play" laws are increasingly being proposed as a solution to America's healthcare crisis. At least a dozen state legislatures, including California, Maine, Illinois, and Minnesota, have seriously considered instituting a "Pay or Play" mandate. And all three Democratic presidential frontrunners -- Hillary Clinton, Barack Obama, and John Edwards -- include a version of "Pay or Play" in their healthcare reform platforms.

"The cost of providing health insurance is so great that most businesses covered by 'Pay or Play' laws will be forced to cut back on hours and jobs just to stay afloat," said Dr. Jill Jenkins, Chief Economist for the Employment Policies Institute. "As healthcare costs continue to rise, insurance mandates on employers will result in increasingly substantial job loss, with the most vulnerable members of the work force getting hurt the most."

Outside research by the Towers Perrin consulting firm estimates that in 2008 the average per-employee cost for an employer to provide health insurance will be $7,272 a year. The average business in the hotel and restaurant industry has a per-employee profit margin of $1,553, according to federal census data. That means the cost of providing insurance to an employee for a hotel or a restaurant could be up to 4.68 times higher than the profit that the average employee produces.

For a copy of the study, titled "Who Gets What From Employer 'Pay or Play' Mandates," visit EPIonline.org: http://epionline.org/downloads/BurkhauserSimon.pdf

The Employment Policies Institute is a nonprofit research organization dedicated to studying public policy issues surrounding entry-level employment. For more information or to schedule an interview, please contact Tim Miller at 202-463-7650.


'/>"/>
SOURCE Employment Policies Institute
Copyright©2007 PR Newswire.
All rights reserved

Related medicine news :

1. U of M study: Early treatment can reverse heart damage
2. New study: Pine bark reduces perimenopausal symptoms
3. U of M study: Health food supplement may curb addiction of pathological gamblers
4. New study: Pine bark extract reduces ADHD symptoms in children
5. Kaiser Permanente study: Alcohol amount, not type -- wine, beer, liquor -- triggers breast cancer
6. UGA study: Youth exposed to smokeless tobacco ads despite settlement
7. New National Medicaid Study: Minnesota Under Funds Seniors Nursing Home Care $167 Million Annually
8. Study: Modafinil is effective in treating excessive sleepiness
9. Breaking Study: Masimo Pleth Variability Index (PVI) Shown Effective in Noninvasive Detection of Changes in Ventricular Preload and Fluid Volume
10. New study: pine bark extract boosts nitric oxide production
11. Study: HPV test beats Pap in detecting cervical cancer
Post Your Comments:
*Name:
*Comment:
*Email:
(Date:6/27/2016)... ... , ... TopConsumerReviews.com recently awarded their highest five-star rating to Best Buy Eyeglasses, ... the United States and Canada wear eyeglasses. Once considered to be a purely functional ... a fashion statement. Even celebrities use glasses as a way of creating an iconic ...
(Date:6/26/2016)... (PRWEB) , ... June 26, 2016 , ... Brent Kasmer, a legally blind and certified ... be personalized through a fitness app. The fitness app plans to fix the two major ... only offer a one size fits all type program , They don’t eliminate ...
(Date:6/25/2016)... ... ... "With 30 hand-drawn hand gesture animations, FCPX users can easily customize each ... Film Studios. , ProHand Cartoon’s package transforms over 1,300 hand-drawn pictures into hand ... select a ProHand generator and drag it above media or text in the Final ...
(Date:6/25/2016)... ... June 25, 2016 , ... Conventional wisdom preaches the benefits ... terms of the latter, setting the bar too high can result in disappointment, perhaps ... slow progress toward their goal. , Research from PsychTests.com reveals that ...
(Date:6/24/2016)... ... June 24, 2016 , ... The Pulmonary Hypertension Association ... it will receive two significant new grants to support its work to advance ... 25th anniversary by recognizing patients, medical professionals and scientists for their work in ...
Breaking Medicine News(10 mins):
(Date:6/26/2016)... , June 27, 2016  VMS Rehab Systems, ... Board will take whatever measures required to build a ... stock which is currently listed on the OTC Markets-pink ... Company Chairman and CEO, "We are seeing an anomaly ... to understand, not only by the Company, but shareholders ...
(Date:6/24/2016)... FRANCISCO, Calif. , June 24, 2016 /PRNewswire/ ... ), a biopharmaceutical company developing novel therapeutics for ... unmet needs, today announced the closing of its ... of common stock, at the public offering price ... in the offering were offered by GBT. GBT ...
(Date:6/24/2016)... 24, 2016 The Academy of Managed Care ... that would allow biopharmaceutical companies to more easily ... make formulary and coverage decisions, a move that addresses ... medicines. The recommendations address restrictions in the ... the drug label, a prohibition that hinders decision makers ...
Breaking Medicine Technology: