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Creighton economist says health care law ruling reduces some uncertainty, but will drive up costs

A Creighton University economist says the Supreme Court’s ruling on the Affordable Care Act reduces some uncertainty for businesses.

The Court ruled in a 5-4 decision that the federal government can’t directly compel individuals to buy health insurance. Those who don’t buy health insurance will pay a tax. 

Economist Ernie Goss says he’s concerned about the impact of the law on businesses with 50 to 55 employees. "Those with more than 50 employees have to provide health insurance. Those less than 50 do not have to provide insurance. So you have an incentive for companies that are around that threshold of 50 may shed employees, or those who are below 50 who were going to hire new employees won’t hire them."

Goss says from an economic standpoint, millions more people having health care coverage is an increase in demand---which he says will drive up health care costs. He says it could also result in longer lines and wait times for appointments starting in 2014.