job lock


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job lock

Health care A situation in which a person is in effect–but not in actual fact–forced to remain in a job, due to fear of losing health care coverage or because a future employer's health plan won't cover a medical circumstance–eg, a pre-existing condition, in the employee or dependents. See Pre-existing condition.
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For instance, healthcare reform may free would-be entrepreneurs from job lock.
Over the past fifteen years, dozens of studies have documented the detrimental impact that job lock has on the economy.
Job lock is a serious problem for our society, because one of the bedrocks of our long-term economic success is our fluid labor markets compared to other nations, like France and Germany, that make it expensive and administratively burdensome to hire new employees or to fire unproductive ones.
16) The separation analysis bears some similarity to the job lock literature.
These factors create market distortions and give rise to job lock situations.
Under a job lock environment, the sorting mechanism that matches worker characteristics with job characteristics does not work.
The most well-known policy responses to job lock have been the Consolidated Omnibus Budget Reconciliation Act of 1985 (COBRA) and the Health Insurance Portability and Accountability Act of 1996 (HIPAA).
If some of these individuals would have separated from their employer had health insurance been completely portable, job lock arises.
Job lock is expected to be minimized by three changes that are shared by many reform initiatives: universal coverage, standardizing the amount of insurance employers must provide, and instituting community ratings to eliminate rules against pre-existing conditions.
Although job lock as currently defined may not be a problem under many of the reform plans being considered, subsidies such as those spelled out in the Health Security Act could make it quite costly for low-wage workers at fully subsidized firms to move to an unsubsidized firm or to one subsidized at a lower rate.
Job lock is a condition in which employees delay or avoid changing employers because they fear they would lose their health insurance.
The fundamental economic issue with job lock is the quality of matches between workers and jobs.