This study investigates how changes in the economic incentives created by the Affordable Care Act (ACA) will affect the probability that private‐sector U.S. employers will offer health insurance. Using the Medical Expenditure Panel Survey Insurance Component for 2008‐2010, we predict...

Economic incentives such as the preferential tax treatment of premiums and economies of scale encourage employers to provide health insurance through the workplace. The employer's decision to offer health insurance depends on how much workers value insurance relative to wages, and that value is...