Posts tagged worker compensation
Reforms to Mitigate the Wage Effects of Employer Health Coverage
April 28, 2025 // Congress also should go beyond redistribution and reform ESI to slow premium growth in future years. While ESI has many positive characteristics, individual employers struggle to control costs. Even large employers lack the scale to change how medical services are delivered to patients, and many companies do not want to upset their workers with more restrictive health coverage than is the norm among their competitors. The solution to this collective action problem is to establish rules for all ESI plans that push the entire market toward more cost discipline. For instance, ESI coverage should incentivize strong price competition by sharing savings with plan enrollees who select lower-priced suppliers of services. Employers also should offer to their workers at least one health plan which meets strict criteria for high-quality and low-cost care.