During the 1990s, growth in health care costs slowed considerably, hel
ping to lessen the spending strain on business, government, and househ
olds. Although cost growth has slowed, the Federal Government continue
s to pay an ever-increasing share of the total health care bill. This
article reviews important health care spending trends, and for the fir
st time, provides separate estimates of the employer and employee shar
e of the premium costs for employer-sponsored private health insurance
. This article also highlights some of the emerging trends in the empl
oyer-sponsored insurance market, including managed care, cost-sharing,
and employment shifts.