Baucus bill may prompt low-wage firms to drop insurance

10/6/2009 | NYTimes.com

The employer-paid insurance mandate proposed by the Senate Finance Committee likely would cause businesses that pay low wages to drop what coverage they do have and opt to pay the government a $400 fee for each worker, according to Ann Arnold, a retired Chicago employment lawyer. These low-wage companies, which now use insurance as a recruiting tool, would no longer have to worry about offering insurance because their low-wage competition also would opt for subsidies, she says.

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