ERISA, agency costs, and the future of health care in the United States.
Because so many Americans receive health insurance through their employers, the Employee Retirement Income Security Act (ERISA) of 1974 plays a dominant role in the delivery of health care in the United States. The ERISA system enables employers and insurers to save money by providing inadequate health care to employees, thereby creating incentives for these agents to act contrary to the interests of their principals. Such agency costs play a significant role in the current health care crisis and require attention when considering reform. We evaluate the two major health care reform movements by exploring the extent to which each reduces agency costs. We find that agency cost analysis clarifies the benefits, limits, and uncertainties of each approach.
Loyola University Chicago School of Law, USA.
John
J
Bronsteen
Brendan S
BS
Maher
Peter K
PK
Stris
D003363:Cost Control; D003362:Cost-Benefit Analysis; D003695:Delivery of Health Care / Q000191:economics / Q000331:legislation & jurisprudence* / Q000639:trends; D019461:Employee Retirement Income Security Act / Q000191:economics*; D017049:Employer Health Costs; D005544:Forecasting; D006264:Health Benefit Plans, Employee / Q000191:economics* / Q000331:legislation & jurisprudence; D018166:Health Care Reform; D016365:Liability, Legal; D012308:Risk Management; D014481:United States; D019472:Universal Health Insurance / Q000191:economics / Q000331:legislation & jurisprudence