Pepper partner Jonathan A. Clark was quoted in the July 17, 2012 issue of Human Resource Executive Magazine Online in the article “The Pay-or-Play Decision for Employers.” This article discusses the Affordable Care Act and recent data studies about how employers will decide whether to play or pay.
"It's the age-old issue of aggregating data," Clark says, noting that such data does not always translate to a definitive result across all employers and market segments. Another consideration, he adds, is that many workers in lower-paid sectors (retail, hospitality, etc.) who already eligible for ESI benefits, but choose not to enroll (the working uninsured), will still have a choice: They can buy the coverage via the exchanges or pay the tax/penalty as set forth by the individual mandate. "It would not surprise me that, at the individual level, people choose to pay the penalty because they are not paying for employer-subsidized coverage already," he says.
The article is available online at http://www.hreonline.com/HRE/story.jsp?storyId=533349389.