But the reason you are offering higher wages is to offset the portion of health insurance your competitor does not offload on their employees. In the future, because of the mandate, your uninsured employees will be forced to pay for both the portion your competitors' employees pay and the portion you competitor pays. You will also have to pay a fine for not providing your employees health insurance and, as a small business owner, you will miss out on the tax break you would qualify for as a small business. Also, the reason for the tax break for small businesses is because health insurance for small businesses is more expensive than than insirance for large companies because their pool is smaller than the pool for larger companies. Oh, and on an unrelated note, truly large companies are largely self-insured and contract out the management of their self-insurance.