CHP/PCOR core faculty member Alain C. Enthoven provides comment for a Nov. 8 Sacramento Bee article on the possibilities for employer health insurance coverage, in California and nationally, after last week's narrow defeat of a California ballot initiative that would have required most companies in the state to buy health insurance for their workers.

While the Bush administration is pushing the creation of association health plans -- federally regulated plans that permit small businesses to buy insurance through trade groups -- Enthoven says such plans, which feature bare-bones benefits packages, may not save businesses much money. Instead, he says companies should adopt programs like the California Public Employees Health System, which gives workers economic incentives to choose the most cost-effective health plans.