What will happen if employers drop health insurance? A simulation of employees' willingness to purchase insurance in the individual market

Although employer-sponsored insurance is the primary source of health insurance for non-elderly individuals, premium growth and federal health insurance reform, including tax credits to purchase individual insurance, might decrease employers' propensity to offer coverage. Using estimates from a model of employer-sponsored insurance take-up, we simulate the proportion of workers who hold coverage who would be willing to purchase individual coverage if their employers dropped this benefi t. Additionally, we consider how take-up rates would increase given the availability of income-based subsidies for workers who lose insurance.