Report: Healthcare reform law to cost businesses $175M

By Globe Staff

Employers will spend an estimated $175 million more a year for health insurance under the state’s healthcare reform law, according to a report released today by the Massachusetts Taxpayers Foundation.

The increase in costs will include $150 million as more employees accept coverage and $24 million for new prescription drug benefits, according to the report, “An Analysis of the Essential Role of Employers in Massachusetts Health Care Reform.”

The report estimates that an additional 50,000 employees and their dependents will take advantage of their employer health plans because of the new law's requirement that everyone have health insurance.

Michael J. Widmer, president of the business-backed budget watchdog group, said the figures represent the first time that someone has tried to estimate the costs of the new law to businesses.

"Employers are carrying a major responsibility in terms of healthcare reform," he said.

The report concluded with a warning that rising healthcare costs must be controlled or reform could be jeopardized.

"The delicate balance of shared responsibility among government, employers, and individuals -- and the broad consensus of support for healthcare reform in Massachusetts -- assumes that health coverage will not become unaffordable for any of the parties, an assumption that will be constantly tested as more and more residents become insured," the report said.

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