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slides14 - Who Pays Tax subsidy Employer mandates Impacts...

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Who Pays? Tax subsidy Employer mandates Impacts of Tie Uninsured Insurance and Employment Angela Fertig Spring 2010 Angela Fertig Insurance and Employment
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Who Pays? Tax subsidy Employer mandates Impacts of Tie Uninsured Who Pays? 1 I Wage is determined by intersection of LD and LS I Health insurance paid by an employer shifts back the LD curve by the per unit cost of the benefit (z) I If workers value the benefit exactly z, then the LS curve shifts out by z wage falls by z, employment stays the same Angela Fertig Insurance and Employment
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Who Pays? Tax subsidy Employer mandates Impacts of Tie Uninsured Who Pays? graph 1 Angela Fertig Insurance and Employment
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Who Pays? Tax subsidy Employer mandates Impacts of Tie Uninsured Who Pays? 2 I If workers value the benefit more than z (group plan is better), then LS shifts out by more than z wage falls by more than z, employment increases I Workers pay for insurance with lower wages!
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