SCHIP and Perverse Incentives

By September 27, 2007Health Care, Taxation

David Freddoso passes on an e-mail from a reader at The Corner.

Maybe I’m missing something but if I ran a business, SCHIP expansion would have me jumping with joy: I’d kick dependents off of employees’ insurance plans as fast as I could. Just think of the immediate (who cares about future costs?) cost savings if I could jettison a hefty percentage of dependents?

And another:

I have a business with about 500 employees & I’ve already thought that if [SCHIP] passed I would be calling the union for a reopener. Who needs my coverage when the govt will supply for you?

Single-payer health care, bit by bit.

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