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Will Divestment from Employment-Based Health Insurance Save Employers Money? The Case of State and Local Governments
National Bureau of Economic Research [NBER] 
June 16, 2014
"[The authors] investigated whether [state and local governments (SLGs)] would save under two scenarios: [1] shifting all employees and under-65-retirees to alternative sources of coverage; [2] shifting only employees whose household incomes indicate they would be eligible for federally subsidized coverage and all under-65-retirees. Full divestment would cost SLGs more than they currently pay, due primarily to penalty costs. Selective divestment could save SLGs nearly $119 billion over 10 years at the expense of the federal government."
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