After the failed negotiations over the repeal of Obamacare earlier in March, the Trump administration appears to be on the brink of proposing a new health care bill. While the details are still sketchy, it seems likely that the new bill will leave many lower-income Americans without access to health insurance.
The Business Case for Providing Health Insurance to Low-Income Employees
If the ACA is repealed, it seems likely that many lower-income Americans will lose access to health insurance. Should this come to pass, there’s research evidence that the private sector has a strong incentive to step in. One study found that granting health insurance to low-income employees significantly reduced their stress levels; since stress is a predictor of burnout, turnover, and low productivity, it’s in a company’s interests to reduce it. Another study found that low-income people tend to make decisions that preference short-term gains instead of long-term rewards in part because of dire financial worry; health insurance could help mitigate these effects. Finally, a seminal study found that a lack of money saps people’s attention, because it creates multiple concerns to worry about. Providing health insurance could take one major concern off the table, allowing more low-income employees to focus on the job.