Consequences of the Obamacare Mandate The health insurance mandate will crowd out jobs, wage increases, and other consumption. These are the biggest problems created by the new federal requirement that individuals who are not insured through their employer purchase health insurance starting next January, according to Independent Institute Research Fellow John C. Goodman, author of Priceless: Curing the Healthcare Crisis.

Workers at the lower end of the wage and salary scale may be hit especially hard. “Expect wage stagnation over the foreseeable future, as employers use potential wage increases to pay for expanded (and mandated) health benefits instead,” Goodman writes in Psychology Today. “At the low end of the wage scale, however, the effects of this new law are going to be devastating.” Employees at Walmart or chain restaurants such as McDonald’s and Denny’s may find that the additional costs for their employer has priced them out of a job.

Goodman also warns of greater lobbying that will come about as special interests compete to get their favored perks part of the mandated benefits package. “This has already happened at the state level,” Goodman writes. “All told, there are 2,156 mandates at the state level. They increase the price of insurance and have priced as many as one-in-four uninsured people out of the market.” Goodman cites a 2008 report from the US Department of Health and Human Services as evidence.