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This entry was posted on Friday, February 5th, 2010 at 2:30 pm and is filed under FYI. You can leave a response, or trackback from your own site.
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Feb 5, 2010
3 Responses to “Employer Selection of Health Plans for Employees is Wasteful”
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Helium
February 5th, 2010 at 3:16 pm
That’s fascinating. That implies quite a large welfare loss.
February 5th, 2010 at 5:42 pm
It also implies a large welfare gain from loosening the employer tie to emloyee health insurance.
February 5th, 2010 at 5:59 pm
I’m not sure what is being claimed.
It doesn’t specify what percentage of the total premium would have been covered by the employer contribution. And it doesn’t say anything about the alternate plan is after-tax.
It’s easy to imagine a scenario where the employer contribution was small to begin with, and an employee is happy to give up the entire amount in exchange for availability of a different group plan.