A recent Urban Institute report provides the “news” that ObamaCare’s employer mandate has negative labor market effects, particularly for low-income Americans. Even think tanks that support ObamaCare have realized it broke the labor market, particularly for low-skilled workers.
This revelation shouldn’t be news to anyone, but the report does provide a set of important reminders:
In the short term, research suggests removing the employer mandate will not reduce insurance coverage substantially. The Urban Institute estimates employer coverage will be reduced by 500,000, but coverage gains of 300,000 in Medicaid and exchange coverage will result in a net loss of 200,000. This falls in the middle of estimates from the Congressional Budget Office and the RAND Corporation, both of which provided similar estimates in the past.
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