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Health Care Policy Center

Employer mandate for “affordable coverage” creates confusing incentives for employers, employees

If [an employer] does offer health insurance, the worker with dependents will prefer that the coverage is unaffordable. That's not a typo -- if the coverage is unaffordable, then the employee will be able to buy health insurance for his family on the exchange. Continue reading

Diana Furchtgott-Roth writes:

Cornell University economics professor Richard Burkhauser showed that in 2014, millions of low-income Americans may be unable to get subsidized health insurance through the new health care exchanges. …

If the firm does offer health insurance, the worker with dependents will prefer that the coverage is unaffordable. That’s not a typo — if the coverage is unaffordable, then the employee will be able to buy health insurance for his family on the exchange.

A firm that offers unaffordable coverage will have to pay a penalty of $3,000 per worker. But workers would prefer to receive a lower salary, have the employer pay the $3,000 penalty, and be able to buy subsidized health insurance on the exchange.

This causes substantial disincentives to marriage. …

Read more at the Washington Examiner: Another unpleasant surprise from Obamacare.

(via FIRM)