Thursday, May 22, 2008

Should we end ERISA?

What is seen and what is unseen

By Joseph D. Coletti

Categories: HSAs, etc., Individual Mandates, Insurance Regulation, North Carolina

Somebody suggested the other day getting rid of the health insurance component of ERISA. Duke economist Chris Conover estimated that the ERISA mandate actually produced $46 billion in net benefits. In North Carolina, ERISA preemption of state law galvanized small businesses to oppose a tax on health insurance policies to pay for a health insurance high-risk pool with optional HSA coverage in 2007. But many of us are predisposed to remove mandates wherever they exist, and in this case the (seen) benefit mainly exists because it prevents other mandates from increasing the cost for a large segment of those with insurance.

Is ERISA that rare jewel, a good mandate, or does it simply hide the cost of other mandates (like an employer mandate to provide insurance) and so make them easier for large firms and legislators to accept?

However you answer that question, is ERISA worth keeping?