CBO - Effect of Health Insurance on Labor Markets

The Congressional Budget Office (CBO) recently released an issue brief on the effect of changes to the health insurance system on labor markets. The brief reports that:

"Changes to the health insurance system could affect labor markets by changing the cost of insurance offered through the workplace and by providing new options for obtaining coverage outside the workplace. For example:

• Requiring employers to offer health insurance—or pay a fee if they do not—is likely to reduce employment, although the effect would probably be small.
  

• Providing new subsidies for health insurance that decline in value as a person’s income rises could discourage some people from working more hours.
  

• Increasing the availability of health insurance that is not related to employment could lead more people to retire before age 65 or choose not to work at younger ages. But it might also encourage other workers to take jobs that better match their skills, because they would not have to stay in less desirable jobs solely to maintain their health insurance."

The brief can be found at http://www.cbo.gov/ftpdocs/104xx/doc10435/07-13-HealthCareAndLaborMarkets.pdf