Firms that offer the mandated benefit
in the amount specified and little of other benefits will not be adversely affected.
One problem with relying on a mandated benefit
is that the mandated coverage might have too low of a value to help purchasers much with the cost of paying for nursing home care, Forte says.
As for the cost of mandates, according to Griffin, it has been the practice of the Insurance Department to "estimate the cost of a particular mandate at the time it is proposed." But it is "often difficult to provide an exact estimate of cost" because often insurers are "providing the proposed mandated benefit
on a voluntary basis when such a benefit is being considered for enactment as a mandate."
laws require health insurers to cover specified services such as a 48-hour hospital stay after delivery of a baby or reconstructive breast surgery after mastectomy (Laugesen et al.
"Consumer choice and affordability prevailed in my mind over a mandated benefit
which is currently and abundantly available in the market," he said in his veto message.
Because enforcing rules against discrimination in the hiring of workers is relatively difficult, it is often reasonable to assume that only restrictions on wage differentials are binding, as numerous commentators have emphasized.(12) If the analysis of mandates directed to workers as a whole is applied in this setting, the conclusion is that whether the value of the mandated benefit
exceeds or falls short of its cost is precisely revealed by whether the employment level of workers rises or falls with the mandate.(13) But, as Part I.B.2.a emphasizes, with binding restrictions on wage but not employment differentials, the employment level of the accommodated group will fall with an accommodation mandate no matter what the value-cost relationship for the mandated accommodation is.
If the disemployment effect is due to a binding minimum wage, then wages should be unaffected by the imposition of or increase in a mandated benefit
or payroll tax.
As a consequence, in the absence of wage discrimination, employers are likely to screen workers, hiring those (Type I's) with lower benefit costs.(20) A consequence of such wage rigidity is that mandated benefit
programs are likely to work against the interests of those that most desire the benefit.
Krueger and I study the effects of increases in the cost of workers' compensation insurance, the oldest and largest mandated benefit
in the United States.
White attributes this recognition to his entire team at ShelterPoint for the New York Paid Family Leave program: "My associates and I decided to take the lead in educating the New York community about Paid Family Leave, and working hand-in-hand with government to implement this new mandated benefit
. Tremendous thanks to my wonderful, hard-working and smart team of associates from ShelterPoint for making this honor possible."
The 2007 law mandated benefit
increases for injured workers and cost reductions for businesses.
A particular case may arise when the mandated benefit
is of value to a specific identifiable group, such as women, but there are barriers to relative wage adjustment.