No. of Recommendations: 2
It is true that a market where employees are in high demand might favor providing insurance. But with expansion of eligibility/subsidies for government provided health care insurance this is less of an issue. And if you haven't noticed lately, unemployment is quite high and employers don't need to compete hard for employees.

Not likely.

It will be far more cost effective for the employer to simply pay the employee extra money for anyone making less than $50k a year or households making less than $88k a year since the government is going to subsidize those people. The company could pay each employee $4,000 more a year and let them buy private, government subsidized insurance, cheaper than what the cost per employee on a group plan would be.

Unless your small business has highly compensated employees, you will liekly be better off dropping insurnace and simply paying your employees more income. As a business, you can write-off both expenses.
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