When asked who pays for health care in the United States, the usual answer is “employers, government, and individuals.”
Most Americans believe that employers pay the bulk of workers' premiums and that governments pay for Medicare, Medicaid, the State Children's Health Insurance Program (SCHIP), and other programs.
However, this is incorrect. Employers do not bear the cost of employment-based insurance; workers and households pay for health insurance through lower wages and higher prices. Moreover, government has no source of funds other than taxes or borrowing to pay for health care.
Data are from the Council of Economic Advisers6 and Catlin et al.7
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