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Cover Me

Mandatory health insurance may be bad for business.

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This story appears in the September 2006 issue of Entrepreneur. Subscribe »

Starting next year, Massachusetts will require every state resident 18 and older to have health insurance, and Massachusetts companies with more than 10 employees that don't offer insurance must pay an annual $295 fee per employee.

"I think it's well-intentioned, but not a very good idea," says Aaron Green, 37, founder of Professional Staffing Group, a 10-year-old Boston staffing firm with annual sales of $35 million. Green, who provides insurance for his 50 employees and his temp work force, is concerned the law will impact wages. He's also worried about a surcharge written into the law that could force small employers who don't offer insurance to pay up to 100 percent of employee health-care costs when costs for the entire company surpass $50,000.

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