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Posting date: October 13, 2004 Copyright © 2004 by Project HOPE
Employers Responses To A Play-Or-Pay Mandate: An Analysis Of Californias Health Insurance Act Of 2003
1 Anna Sinaiko is a doctoral candidate in health policy at Harvard University in Cambridge, Massachusetts.
*Corresponding author.
California recently enacted a play-or-pay employer mandate (known as SB 2) to expand health insurance coverage to a portion of the states working uninsured population. Implementing SB 2 will change the behavior of employers affected by the legislation, with consequences for Californias labor market and uninsured citizens. This paper applies findings from the literature and an economic analysis to California data to estimate the potential reduction in wages, quantify the dispersion of risk across employers, and discuss other employment effects. These employer responses will reduce the number of uninsured people in California who gain eligibility for health coverage under SB 2. Key Words: Business Of Health, Consumer Issues, Health Reform, Health Spending, Insurance - Employer-Based System, State/Local Issues
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