ABSTRACT
Most of the non-elderly in the United States obtain health insurance through their employer, or the employer of a family member. In 2003, 64 percent of the non-elderly US population was insured through employer-sponsored health plans, and among those with private insurance, 91 percent were insured through an employer-sponsored plan. The question of who pays for health insurance is critical to the discussion of consumer choice in employer-sponsored health insurance because, as common sense would suggest, those who pay for health insurance get to decide what type of health insurance and health care they have. Growth in managed care resulted in a moderation of health insurance premium growth in early to mid-1990s, as managed care companies were successful at limiting payments to providers. The adoption of managed care was successful at reducing the costs of health care and health insurance and as a result, employees faced a better tradeoff in terms of wages and health insurance benefits.
