Many low-income workers decline employer-sponsored insurance (ESI), very often because of the high cost of employee premium contributions. The federal government could subsidize employee contributions to ESI through a tax credit, which would be known as ESIC. In this way, employers would continue to contribute to insurance for their workers, and more federal dollars could be used to reach a greater number of low-income workers.

This report was prepared for Strategies to Expand Health Insurance for Working Families, A Report Series from the Commonwealth Fund Task Force on the Future of Health Insurance.