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Use of Subsidies to Low-Income People for Coverage through Small Employers
Authors: Ed Neuschler and Rick Curtis
May 2003
If tax credits or other public subsidies are made available only for health insurance that is not employment-based, serious erosion of employer coverage could result. To prevent this, public subsidies targeted to low-income workers and families could be applied in ways that broaden employer coverage for low-income workers and their families by encouraging small employers with largely low-wage workforces to offer and partially fund health coverage for their workers. To accomplish this, such employers—very few of which now provide health coverage—must be allowed to contribute much less than normally required in the commercial market.
This report was published in Health Affairs - Web Exclusive.
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