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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 , 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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