Another factor that hasn't been mentioned yet is adverse selection.
Individual health insurance plans do exist, but few healthy people buy them, so the pool is sicker than average, so the insurance costs more, so even fewer healthy people buy the plans, and so on.
Employer group plans cost less in part because the pool is generally healthy.
Individual health insurance plans do exist, but few healthy people buy them, so the pool is sicker than average, so the insurance costs more, so even fewer healthy people buy the plans, and so on.
Employer group plans cost less in part because the pool is generally healthy.