The U.s. Health are market Private Insurance Group market Possible that workers within a firm are fairly heterogeneous, so adverse selection is less of a concern On the other hand, employees not randomly assigned An employer may shift-compensation toward wages,or shift employee's onto spouse's plan by offering a less generous package of benefits More problematic at smaller firms 1010 The U.S. Health Care Market: Private Insurance • Group market – Possible that workers within a firm are fairly heterogeneous, so adverse selection is less of a concern – On the other hand, employees not randomly assigned • An employer may shift-compensation toward wages, or shift employee’s onto spouse’s plan by offering a less generous package of benefits. • More problematic at smaller firms