Health mandate could cost Ill. jobs

Crain's:

A federal mandate requiring employers to provide health insurance for their workers would cost Illinois 81,000 jobs, according to a report released Friday by the National Federation of Independent Business.

So-called “employer mandates” have been passed in Massachusetts and considered by lawmakers in other states, including the State of Illinois, as a way to thin the growing ranks of the uninsured. President Barack Obama supports the mandates as a key component of his health-reform plan, though it’s unclear if all employers would be forced to offer health insurance under his proposal.

The NFIB estimates that small businesses would account for 61% of the state’s job losses if an employer mandate were enacted. Overall, the cost burden would shrink Illinois’ economy by $11.2 billion between 2009 and 2013, the lobbying group said.

“Employer mandates have re-emerged as a frequently mentioned tool to help finance increased insurance coverage,” the study said. “However . . . any gains in coverage will come at the price of lost employment and output.”