The Employer-Based Health Insurance System

Award Year: 1995	Investigator: Sherry Glied	Budget: $196,022	Categories: Health Insurance, Healthcare Markets
Abstract: Within the framework of health policy and U.S. labor market changes, Dr. Glied takes a close look at employer-based health insurance, its strengths and weaknesses. She examines: how employer-based insurance systems operate and perform in response to changes in the health care market; increasing differentiation among health plans; an apparent reduction in the number of long-term jobs; and the shifting demographic composition of the U.S. labor force. She studies the ability of employer-based insurance to pool risk, reduce administrative costs, and encourage innovation as well as the impact of the employer-based system on job lock, labor market performance, and industry competitiveness. In addition to developing theoretical models, the project integrates the findings of existing studies in economics and health services research, conducts new analyses using a variety of secondary datasets, and studies noteworthy examples of employer-based systems. Piecing these elements together, findings identify the linkages among health policy, the economy, and the future of employer-based coverage.