Associated Press
Whereas the ACA’s original subsidies were on average worth $293 (5%) less to households than the value of the tax exemption for employer-sponsored insurance, the expanded subsidies would be worth $3,960 (65%) more. That creates a huge incentive for employers to stop offering health benefits. A Treasury analysis published last December suggested a similar conclusion.
If all employees currently receiving employer-sponsored benefits switched, these higher subsidies would cost federal taxpayers an additional $250 billion a year. Although some companies might still offer health benefits to avoid a $2,970-an-employee penalty, this would deter the elimination of benefits for only one-fifth of nonelderly Americans, as it doesn’t apply to the coverage of spouses, children, or employees of small businesses or the government.
Source: Chris Pope, Wall Street Journal