This chapter discusses health insurance, including its sources (public and private) in the US and the unique quirks introduced by employer-sponsored insurance. Employer purchasing of health insurance on behalf of employees likely induces a decrease in monetary wages, so employees are paying for much of this out of their own pockets. This is due to the federal tax exclusion of fringe benefits, such that it is cheaper for employers to compensate their employees in health insurance than in monetary salary. The chapter also discusses selection, risk pooling, and coverage options in large group health insurance, as individuals will likely choose jobs with health packages that maximize their own utility, which can lead to adverse selection of which managers should be aware. The chapter concludes by addressing Medicaid and Medicare as the other two arms of insurance in the US, with a final word of caution that our private-centric system may be unstable to future political pressures.