The reasons that you have given might be part of the explanation, but on their own they do not explain it. Yes, it is true that there is a tax benefit to emplo

The reasons that you have given might be part of the explanation, but on their own they do not explain it. Yes, it is true that there is a tax benefit to employers purchasing healthcare insurance, which is tax deductible, and providing it as a benefit in kind. However, it does not follow at all from that the insurers should benefit: their costs are not affected and in a competitive market, they would price at marginal cost. Yes, it is true that people in employer plans could be perceived as being a better risk than those who are do not have them. They would still be better risks (and 'deserving' of a lower premium) however they obtained their health insurance. So, as I said before, there must be something else going on. Similar arguments apply to your claim that employers are less price sensitive than consumers - that really is implausible, given their buying power and incentives to maximise profits.