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UC: State health care proposals won’t increase business costs

by on
in Small Business Tax Deduction Strategies

The University of California Berkeley Center for Labor Research issued a research report on July 11 to determine the impact on businesses’ operating costs of two state health care proposals that aim to expand health care coverage in California. The findings: The effect will be negligible.

The report examined the impact of the Governor’s Health Care Proposal, which would require every California resident to have health insurance, with funding coming from individuals, employers, insurance providers, hospitals or the state and federal government, depending on need.

The second proposal is Assembly Bill 8, which would require employers to either spend at least 7.5% of payroll for employee health care or pay into a state pool.

According to the study, the two proposals would result in little if any increase in business operating costs after a short adjustment period. The center also concluded that the proposals would increase worker productivity, enhance job mobility and would be unlikely to reduce employment.

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