AJMC October 30, 2024
The US should consider reducing or eliminating employer-sponsored insurance. Here are some ways to do it efficiently.
Health care financed by insurance represents a major portion of the economy in America,1 and more than half of people with insurance are covered by their employer.2 For employers, approximately 30% of employee expenses go to benefits, of which health insurance is the largest component.3 Collectively, this is more than $1 trillion a year in employer-sponsored insurance (ESI) expenses.1 The major problem with this is that ESI leads to lower-quality, higher-cost health care while hurting the employer’s productivity. In this perspective, I build the case that ESI should end in the US.
Employers Do a Poor Job of Managing Health Care Costs
The...