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6min chapter
Michael Cannon on Employer-Sponsored Health Care
The Great Antidote
Employer Sponsored Health Insurance
More than half the US population about 156 million US residents get health insurance through an employer. The federal government taxes that dollar at a rate of 33 percent so when your employer pays you a dollar on average if that's the marginal dollar then the government has taken 33 cents of that dollar. This creates a big incentive for workers to enroll in employer sponsored health insurance. It also drives up the prices or premiums for health insurance because if people have more comprehensive insurance and then use more medical care that means more claims filed against the insurance company.
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