We model the labor market impact of the key provisions of the Massachusetts and national ‘mandate-based’ health reforms: individual mandates, employer mandates, and subsidies. We characterize the compensating differential for employer-sponsored health insurance (ESHI) and the welfare impact health reform in terms of ‘sufficient statistics’. Relying on the Massachusetts reform, we find that jobs with ESHI pay USD 5,350 less annually, indicating that the magnitude of the compensating differential is only slightly smaller than the cost of ESHI to employers. Because the newly-insured valued ESHI, the deadweight loss of mandate-based health reform was approximately 2% of its potential size.