Examining Substitution: State Strategies to Limit "Crowd Out" in the Era of Children's Health Insurance Expansions. Mechanism 6: Employer Buy-Ins


Allowing employers to directly buy into state programs at reasonable costs is another means of encouraging employers to take responsibility for sponsoring workers' insurance. The Washington Basic Health Plan (BHP) established provisions in which employers can buy into the program. As BHP is generally less expensive than private insurance for most employers due to subsidized premiums for low-income workers, there is a positive incentive for employers to participate. The employer buy-in also provides employers the benefit of the larger purchasing power and risk pool of the state.