Research and policy to strengthen the employer‐sponsored health insurance market

Abstract

In 2020, over 163 million Americans -50% of the US populationwere covered by health insurance provided by an employer, either through their own job or as a dependent. 1 Close to 60% of firms offer health insurance to at least some of their employees. 2 The population covered by employer-sponsored insurance is bigger than that covered by any other form of health insurance in the United States and heterogenous in terms of age, ranging from children of employees to midcareer adults to those nearing retirement.Whether and how this market works impacts the cost and generosity of health insurance and prices paid out-of-pocket for health services, as well as labor market outcomes such as wages, ultimately affecting access to care and financial well-being for over half of the US population. Yet, despite its significance to a wide swath of Americans, there remains surprisingly little evidence on the effects of market structure and policy in employer-sponsored health insurance markets on individuals. In this commentary, I highlight the importance of an in-depth, evidence-based understanding of this market, including identifying key questions health services researchers are wellsuited to address.