Businesses are wary of a crop of new state health care proposals to reduce the number of uninsured, fearing the programs will drive up their expenses without solving the problem.
I believe this point has been raised more than once here at InsureBlog.
"Once a statute is on the books it becomes easy to bring up the tax," Shaw said
He added the policy could have unintended consequences such as stalling growth, noting that a company might not want to add a 10th employee if it has to start paying the tax. Moreover, Shaw said companies offering health insurance may drop it because paying the 4 percent payroll tax is cheaper than providing coverage, which would only add to problem of the uninsured.
Is this the plan?