To broaden coverage, some health reform proposals would require employers to
offer coverage or pay to help finance subsidies for those without access to
affordable coverage. These types of reforms are often referred to as
“pay-or-play” policies.
The brief explains the concept and policy
implications of employer pay-or-play proposals, which can vary in terms of the
level of coverage required for compliance, the cost of the penalty to employers
who do not offer, and whether small firms are exempt from the requirements.
It is part of a series of briefs providing an overview of key issues
and concepts related to health reform.
Brief (.pdf)