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> Employers get discounted rates because of how many customers That's hilarious. I mean, you are correct that employers bundle employees together. But without
by _jal 7y ago
> Employers get discounted rates because of how many customers
That's hilarious.
I mean, you are correct that employers bundle employees together. But without massive government intervention during and after WWII, the industry would have been wildly different, and the way the trend began was highly historically contingent:
https://en.wikipedia.org/wiki/Stabilization_Act_of_1942 https://en.wikipedia.org/wiki/Stabilization_Act_of_1942
Econ 101 is insufficient for understanding the world.
- CivBase 7y agoI do not want to spread misinformation. If that statement was incorrect, could you let me know how to correct it?
- _jal 7y agoIt is mainly that economic factors regarding employment insurance bundling are side effects of having employment-based insurance, not the cause. It is very useful to look at other countries - we have lots of natural experiments in health care markets. If bundling were determinative of market structure, you'd see the same pattern elsewhere.