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Commentary

What France Can Teach Us About Obamacare


     
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In about a year and a half, the Obamacare employer mandate kicks in. Firms with 50 or more employees will be required to provide expensive health insurance for their workers and their dependents or pay a fine of $2,000 per employee. What difference will that make?

Suppose an employer has 49 low-wage workers. Because these workers can get highly subsidized health insurance in the (Obamacare) exchange, they don’t want health insurance from the employer. They would rather have the cash equivalent in the form of higher wages. Now suppose the employer hires one more worker. Not providing health insurance at this point subjects the employer to a $2,000 fine for each employee.

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John C. Goodman is a Senior Fellow at the Independent Institute and author of the award-winning and widely acclaimed Institute book, Priceless: Curing the Healthcare Crisis. The Wall Street Journal and the National Journal, among other media, have called him the “Father of Health Savings Accounts.”


  New from John C. Goodman!
PRICELESS: Curing the Healthcare Crisis
To cure the ailments of American healthcare we must get rid of the perverse incentives that raise costs, reduce quality, and make care hard to access. We must allow a free-market price system to emerge, so that the laws of supply and demand will work to the benefit of patients and providers alike.






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