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More incentive before not to offer insurance
The Gazette Opinion Staff
Apr. 11, 2010 12:35 am
In his April 2 guest column (“Unintended consequence in new law”), Larry Starr explains that “employers will be penalized $750 per employee per year if they don't provide health insurance.” Because the penalty is small - much less than the cost of providing health insurance - he speculates that employers may drop health insurance to save money.
Before health care reform, the penalty for not providing health insurance to employees was zero. So, up to now, there has been even more incentive not to provide health insurance. And yet most employers do.
Perhaps the situation is more complicated than Starr suggests.
Alan D. Lewis
Cedar Rapids
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