Document Type
Article
Publication Date
4-2008
Journal Title
Fordham Law Review
ISSN
0015-704X
Abstract
Because so many Americans receive health insurance through their employers, the Employee Retirement Income Security Act of 1974 (ERISA) plays a dominant role in the delivery of healthcare in the United States. The ERISA system enables employers and insurers to save money by providing inadequate healthcare to employees, thereby creating incentives for these agents to act contrary to the interests of their principals. Such agency costs play a significant role in the current healthcare crisis and require attention when considering reform. We evaluate the two major healthcare reform movements by exploring the extent to which each reduces agency costs. We find that agency cost analysis clarifies the benefits, limits, and uncertainties of each approach.
First Page
2297
Last Page
2332
Num Pages
36
Volume Number
76
Issue Number
5
Publisher
Fordham Law School
Recommended Citation
John Bronsteen, Brendan S. Maher & Peter K. Stris,
ERISA, Agency Costs, and the Future of Health Care in the United States,
76
Fordham L. Rev.
2297
(2008).
Available at:
https://scholarship.law.tamu.edu/facscholar/1416