Posted: March 5th, 2016
The U.S. government subsidizes the private provision of health insurance through employers. Benefits paid to employees are deductible as expenses by firms. Why then do most small employers in the US not offer health insurance benefits to their employees? Why private insurers, often not willing to sell insurance contracts to small employer groups before the enactment of PPACA, may be more inclined to offer an “essential benefits package” at affordable rates through such exchanges in the near future?
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