Individual versus job-based health insurance: Weighing the pros and cons

Although the majority of insured Americans receive their health insurance t hrough their employers, some depend on the individual health insurance mark et. However, with increased criticism of the lack of choice in group covera ge and various proposals including subsidies or tax credits to decrease the number of uninsured, the individual market may start to play a larger role . In this paper we conclude that although efficient large-group insurance w ill appropriately continue to exist, the individual market appears to be im proving, in both administrative cost and protection against high premiums a ssociated with high risk. For diverse workers now in small groups with litt le plan choice, the individual market might become a reasonable alternative .