Declines in the number of employers that offer health benefits and
increases in workers’ premium contributions can be seen as a proximate
cause of declines in coverage.16 However, it is not clear why
employers’ behavior should have changed, especially during a time
when real incomes had not been declining and job characteristics
had not been changing dramatically.We view changes in employers’
behavior as a phenomenon requiring explanation, rather than as an
explanation for declining coverage. We have shown that these
changes can be understood as a response to rising health care prices.