In the US, if your employer pays for your health insurance, they pay for it with pre-tax dollars. If you buy it, you buy with post tax dollars. That's why emp

In the US, if your employer pays for your health insurance, they pay for it with pre-tax dollars. If you buy it, you buy with post tax dollars. That's why employers pay for it in lieu of paying you more. If your employer pays for your car insurance as a benefit, they pay for it with post tax dollars, so they don't do that. So, employers pay the premium on your health care for the tax advantage. Now consider the how psychology behind not being the one who pays for the premium. Do you care how much your services cost? No. Do you care if the premium goes up? No. Do you shop around for better insurance? No. Do you care if you loose your job if you're sick? Hell yes. In effect all normal market pressures are gone. No one who consumes resources cares about their costs because they're are completely disconnected from paying them or some derivative of them. This is why doctors don't post prices. While the net effect for people with employer provided health insurance is ever increasing rates, the effect on those people without health insurance is brutal. They are trying to enter a market that has no price pressure.