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:2/5/2016)... ... , ... US Sports Camps , official operators of Nike Yoga Camps, ... yoga training. ChildLight Yoga Studio is centrally situated in the picturesque New England city ... Studio founder Lisa Flynn expresses her excitement, “We are thrilled to be partnering with ...
(Date:2/5/2016)... , ... February 05, 2016 , ... The American public ... such water may be safer than regular municipal or well water. The recent experience ... host Sharon Kleyne, could go a long way toward increasing public acceptance of recycled ...
(Date:2/5/2016)... ... February 05, 2016 , ... Give To Cure today announced ... and donate to Give To Cure’s campaign that is crowdfunding clinical trials to help ... and share payments through a smart device. In 2015 alone, Venmo processed $7.5 billion ...
(Date:2/5/2016)... ... 2016 , ... Pivot Point Consulting, a leading national Healthcare ... Services for HIT Implementation Support & Staffing report with an outstanding score of ... healthcare executives, managers and clinicians representing over 4,500 hospitals and 2,500 clinics. , ...
(Date:2/5/2016)... ... February 05, 2016 , ... Dr. Justin Scott and Dr. Lydia Muccioli ... Cost Dental Day to individuals in need. The event is scheduled to take place ... Dental Day is to provide dental care to community members in need. Each patient ...
Breaking Medicine News(10 mins):
(Date:2/4/2016)... Md. , Feb. 4, 2016 In response ... , the FDA,s Deputy Commissioner for Medical Products and Tobacco, ... plan to reassess the agency,s approach to opioid medications. The ... while still providing patients in pain access to effective relief. ... FDA will: , Re-examine the risk-benefit paradigm for ...
(Date:2/4/2016)...  Blueprint Medicines Corporation (NASDAQ: BPMC ), ... investigational kinase medicines for patients with genomically defined ... of directors of Lonnel Coats , a ... industry-related experience. Jeffrey Albers , ... strategic experience developing and commercializing numerous oncology products ...
(Date:2/4/2016)... , Feb. 4, 2016 SONIFI™ Health, ... solutions, today announced that MonteCedro, an innovative retirement ... Engagement System. The system provides a simple and ... access through a tablet PC. ... engagement system provides access to a wide spectrum ...
Breaking Medicine Technology: