Employer-Sponsored Health Insurance 101KFF Authors: Gary Claxton Gary Claxton Matthew Rae Matthew Rae Aubrey Winger Aubrey Winger

https://www.kff.org/health-costs/health-policy-101-employer-sponsored-health-insurance/?utm_campaign=KFF-This-Week&utm_medium=email&_hsenc=p2ANqtz--fcZ-sZMOjbOVgorHC0wr053_prBDJ82FJ-vNFaLBhQ7vq1yi0Y9mu-FSjdn7e-w0fmum2sMJsxc-FiTPGdb9ZnEayfQ&_hsmi=414344360&utm_content=414344360&utm_source=hs_email&entry=table-of-contents-introduction Employer-sponsored health insurance (ESI) is the largest source of health coverage for U.S. residents under age 65. Unlike many other nations, the U.S. relies on voluntary, private health insurance as the primary source of coverage for residents who are not elderly, poor or disabled. Providing health insurance through workplaces is an efficient way of offering coverage options to working families, and the tax benefits of employer-based coverage further enhance its attractiveness. Yet ESI often results in uneven coverage, especially for those with low wages or those working at smaller firms. Overall, 60% of people under age 65, or about 165.6 million people, had employment-sponsored health insurance in 2025. The level of coverage varies significantly with income and other factors, even among working families.