Most people intuitively know that the worst thing government can do in the middle of the deepest recession in 70 years is enact policies that increase the expected cost of labor. Yet that is exactly what happened last spring, with the passage of the health care reform bill.
How bad is it? Right now, we’re estimating the cost of the health plan everyone will be required to have at $4,750 a year for individuals and $12,250 for families. That translates into a minimum health benefit of $2.28 an hour (individual coverage) and $5.89 an hour (family coverage) for full-time employees.
John C. Goodman writing for the National Center for Policy Analysis, a free market think tank in Dallas, goes on to say that translates into $2.28 an hour for individual coverage and $5.89 an hour for family plans. In four years this will become for the employer a $7.25 cash wage and a $5.89 health wage for a total of $13.14 per hour. As an employer this is untenable and for the $10 wage earner this is devastating. His employer cannot afford a additional $6 an hour health insurance.