Small Mass. Firms Still Seeking Affordable Insurance
When Massachusetts passed its landmark healthcare reform law in 2006, some observers expected that it would lead to a drop in employer-provided coverage, especially among small firms, because the legislated penalty for not providing insurance–$295 per worker per year-was much smaller than the cost of coverage. But this has not proved to be the case. In fact, the percentage of Massachusetts adults who get health insurance through their employer has actually increased 5 percentage points to 70 percent. The biggest factor appears to be competition among employers for workers. Because everyone in Massachusetts has to buy insurance, or face a stiff penalty, employers feel they have to offer coverage to keep good employees. Yet with state unemployment at 8.8 percent,…
0 Comments