If I'm reading it right you are being too kind. Do you know what the penalty for not providing health insurance for an employee is? $295 per *year*. Also if an employee is uninsured and gets sick you have to pay a multiple of what taking care of them costs. That is a bit more of an incentive, but can be handled by discriminating against unhealthly employees (hard to prove, if not a disability is it even always illegal). An employer can require employees to buy health insurance as a condition of continued employment - which would be legal since if an employer does not provide insurance the employee is required to find individual insurance.
Also, unless this comes with some really strong regulatory teeth (which given that it was designed by the Heritage foundations is unlikely) I'll bet the insurance companies come out with some brand new, really crappy, really cheap plans.