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A study by Saurabh Bhargava and colleagues at Carnegie Mellon University examined nearly 24,000 employees at a Fortune 100 company, revealing that 61% selected an inappropriate health insurance plan. The researchers estimated that each employee could have saved an average of $372 annually with a better choice, which amounted to about 2% of their salary. In 2018, health care costs consumed over 8% of total household spending, marking a 37% increase since 2004. The difficulty in maximizing welfare stems from the complexity of health care plans, leading to poor decision-making. The study highlights the need to address the challenges Americans face in selecting optimal health insurance options.