Employer-sponsored health insurance Most insured non-elderly Americans receive coverage through employer-sponsored plans. 0 This insurance is not"free",since it is actually part of the worker's total compensation package. The cost of premiums are taken out of the worker's wages. The fact that the costs of insurance effectively come out of the worker's wages is known as wage pass- through. So for the same type of job and skill-level,jobs without employer-sponsored insurance plans may offer higher wages than jobs with them. Bhattacharya,Hyde and Tu-HealthEconomics Bhattacharya, Hyde and Tu – Health Economics Employer-sponsored health insurance  Most insured non-elderly Americans receive coverage through employer-sponsored plans.  This insurance is not “free”, since it is actually part of the worker’s total compensation package.  The cost of premiums are taken out of the worker’s wages.  The fact that the costs of insurance effectively come out of the worker’s wages is known as wage pass￾through.  So for the same type of job and skill-level, jobs without employer-sponsored insurance plans may offer higher wages than jobs with them