In the employer-sponsored insurance market that covers most Americans; many workers are "underinsured." The evidence shows onerous out-of-pocket payments causing them to forgo needed care, miss work, and fall into bankruptcies and foreclosures. Nonetheless, many higher-paid workers are "overinsured": the evidence shows that in this domain, surplus insurance stimulates spending and price inflation without improving health. Employers can solve these problems together by scaling cost-sharing to wages. This reform would make insurance better protect against risk and guarantee access to care, while maintaining or even reducing insurance premiums.
Robertson, Christopher T.
"Scaling Cost-Sharing to Wages: How Employers Can Reduce Health Spending and Provide Greater Economic Security,"
Yale Journal of Health Policy, Law, and Ethics:
2, Article 1.
Available at: http://digitalcommons.law.yale.edu/yjhple/vol14/iss2/1