Household demand for employer-based health insurance. (Health Care Policy).(opt-out payments can encourage workers to access coverage through a spouse)(Brief Article)

Jean Marie Abraham et al., Working Paper 9144, National Bureau of Economic Research, September 2002

"[One] concern of employers pertains to the costs they bear with respect to subsidizing family [health insurance] coverage, particularly when a worker has access to coverage through a spouse. [In order to avoid being chosen] to sponsor coverage for a worker when he or she has another potential source, [employers can change benefits, increase contribution requirements and] establish an opt-out provision or cash payment to a worker who chooses not to take up any coverage. To be cost-effective, the savings generated from not having to pay the employer portion of health …