The economics of employer versus individual mandates

  • Krueger A
  • Reinhardt U
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Abstract

This paper reviews the economic implications of employer and individual health insurance mandates. Although the cost of meeting an employer mandate is nominally paid by employers, in the long run much of the cost may be shifted backward to employees in the form of lower wages. We also compare the consequences of hypothetical employer and individual health insurance mandates for families with different income levels. Depending on their structure, an employer mandate may be more or less progressive than an individual mandate.

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Authors

  • A. B. Krueger

  • U. E. Reinhardt

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