The ACA, Health Care Costs, and Disparities in Employer-Sponsored Health Insurance

This working paper examines the potential changes in the disparities in employer-sponsored health insurance (ESI) and other benefits between low- and high-wage workers under health reform. The analysis suggests that potential changes firms make in compensation could decrease disparities between low- and high-skilled workers in the quality of ESI and increase the disparities in the offering of benefits other than ESI, if the legislation does not slow rising health care costs.