Article by Professors Monahan and Schwarcz Cited in New York Times

A forthcoming article by Professors Amy Monahan and Danial Schwarcz was discussed in a New York Times article addressing health care finance. Monahan and Schwarcz argue in their article, "Will Employers Undermine Health Care Reform by Dumping Sick Employees?" that federal health care reform creates incentives for employers to design their health plans to appeal primarily to healthy employees. At the same time, employers will have incentives to encourage their sick employees to obtain coverage through newly created state insurance exchanges. By doing so, employers can lower their health care costs by forcing others who purchase insurance through state-based exchanges to subsidize the cost of coverage for their sick employees, which in turn will increase the cost of health care reform to the federal government. Their article, which is forthcoming in the Virginia Law Review, is available here: http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1651308.