Unintended Consequences of Healthcare Reform

Medical Cost Versus No Coverage Penalty

Many large companies are examining a course that was heretofore unthinkable, dumping the health care coverage they provide to their workers in exchange for paying penalty fees to the government.

That would dismantle the employer-based system that has reigned since World War II. It would also seem to contradict President Obama’s statements that Americans who like their current plans could keep them. And as we’ll see, it would hugely magnify the projected costs for the bill, which controls deficits only by assuming that America’s employers would remain the backbone of the nation’s health care system.

Hence, health-care reform risks becoming a victim of unintended consequences.

Fortune, May 5, 2010

We have to pass the bill so that you can find out what is in it.

Nancy Pelosi, March 9, 2010

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