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Free Ride: The Senate Health Bill’s Approach to “Employer Responsibility” Means Some Large Employers Get to Take It Easy

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  • Shawn Fremstad

Abstract

Leaders in both the House and the Senate have committed to "shared responsibility" as a basic principle of health care reform, meaning that the costs of health care coverage are shared by individuals, businesses, and the public sector. However, as this issue brief documents, the Senate version of the bill creates a free rider problem that would make it easy for many large and profitable employers, particularly the ones paying poor wages, to shirk their responsibilities.

Suggested Citation

  • Shawn Fremstad, 2009. "Free Ride: The Senate Health Bill’s Approach to “Employer Responsibility” Means Some Large Employers Get to Take It Easy," CEPR Reports and Issue Briefs 2009-49, Center for Economic and Policy Research (CEPR).
    • Handle: RePEc:epo:papers:2009-49
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    File URL: http://www.cepr.net/documents/publications/free-ride-2009-12.pdf
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    More about this item

    Keywords

    health care;

    JEL classification:

    • I - Health, Education, and Welfare
    • I1 - Health, Education, and Welfare - - Health
    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health
    • I3 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty
    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
    • H - Public Economics
    • H2 - Public Economics - - Taxation, Subsidies, and Revenue
    • H5 - Public Economics - - National Government Expenditures and Related Policies
    • D - Microeconomics
    • D6 - Microeconomics - - Welfare Economics
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement

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