Question: Suppose the U S government gets rid of the tax exemption
Suppose the U.S. government gets rid of the tax exemption for employer-provided health insurance. Instead, the government provides a 20% subsidy on employer provided health insurance, so that the employer only has to pay 80% of the cost of such policies. How might this policy change affect the type of workers to whom firms will offer health insurance? Which types of firms is this policy most likely to effect?
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