Health Insurance:

Cost Increases Lead to Coverage Limitations and Cost Shifting

HRD-90-68: Published: May 22, 1990. Publicly Released: May 22, 1990.

Additional Materials:


Office of Public Affairs
(202) 512-4800

Pursuant to a congressional request, GAO examined the potential effects of private employers' attempts to control employee health care plan costs.

GAO found that: (1) private employers' health care spending almost doubled between 1980 and 1987; (2) although medium- and large-sized firms generally continued to offer health benefits to permanent full-time employees, such firms were reassessing the extent of coverage and provision of services; (3) private employers' attempts to control costs included reducing dependent and retiree coverage, hiring contingent workers who were not offered coverage, increasing employee contributions for costs, self-insuring, and controlling or coordinating employee use of health care services; (4) federal legislation exempted self-insured large businesses from state government mandatory coverage requirements; (5) less than half of companies with 10 or fewer employees offered health insurance coverage; and (6) medical underwriting was common among the small firms that did offer coverage.

Nov 15, 2017

Nov 14, 2017

Nov 13, 2017

Nov 6, 2017

Oct 31, 2017

Oct 18, 2017

Oct 4, 2017

Looking for more? Browse all our products here