The notion of revealed preference: Why employers are not indifferent between providing insurance and giving workers a higher wage to compensate them for buying insurance themselves
- From the oral argument in Sebelius v. Hobby Lobby Stores, Inc.
- MR. CLEMENT: . . . If they take away the health care insurance, they are going to have to increase the wages to make up for that. And they're going to have to pay the $2,000 penalty on top of it, plus they're going to have to violate their their own interest which is, we actually we believe it's important to provide our employees with qualified health care.
JUSTICE KENNEDY: Okay, the last is important. But just assume hypothetically that it's a wash, that the employer would be in about the same position if he paid the penalty and the employer pardon me, an employee went out and got the insurance and that the employee's wages were raised slightly and then it's and that it's a wash so far as the employer are concerned, other than the employer's religious objection, but just on the financial standpoint. Can we assume that as a hypothetical. Then what would your case be?