National University System Institute for Policy Research

(858) 642-8498 Get Started

Will companies drop health coverage in wake of court ruling?

Certain firms can pay a fine instead of offering health coverage -- will they?

Roger Showley, U-T SAN DIEGO

Saturday, July 7, 2012

View Article

Kelly Cunningham, National University System
Answer: YES

Full costs of providing health care to employees remains in doubt, even after recent Supreme Court decisions. More questions than answers remain and sustains the uncertainty businesses have towards hiring and investment. Unknown impending costs for health care do not give business owners confidence to expand operations or hire more people. The ruling could also encourage businesses to shift workers to part-time or temporary to avoid the 50-employee threshold. It is likely to be less expensive for some small business owners to pay the penalties or "tax" of non-compliance than pay additional fees to insure all employees.