Subsidies and the demand for individual health insurance in California

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dc.contributor.author Kapur, Kanika
dc.contributor.author Marquis, M. Susan
dc.contributor.author Buntin, Melinda J. Beeuwkes
dc.contributor.author Escarce, José J.
dc.contributor.author Yegian, Jill M.
dc.date.accessioned 2008-07-01T15:35:52Z
dc.date.available 2008-07-01T15:35:52Z
dc.date.copyright Health Research and Educational Trust en
dc.date.issued 2004-10
dc.identifier.citation Health Services Research en
dc.identifier.issn 0017-9124
dc.identifier.uri http://hdl.handle.net/10197/287
dc.description.abstract Objective. To estimate the effect of changes in premiums for individual insurance on decisions to purchase individual insurance and how this price response varies among subgroups of the population. Data Source. Survey responses from the Current Population Survey (http://www.bls.census.gov/cps/cpsmain.htm), the Survey of Income and Program Participation (http://www.sipp.census.gov/sipp), the National Health Interview Survey (http://www.cdc.gov/nchs/nhis.htm), and data about premiums and plans offered in the individual insurance market in California, 1996–2001. Study Design. A logit model was used to estimate the decisions to purchase individual insurance by families without access to group insurance. This was modeled as a function of premiums, controlling for family characteristics and other characteristics of the market. A multinomial model was used to estimate the choice between group coverage, individual coverage, and remaining uninsured for workers offered group coverage as a function of premiums for individual insurance and out-of-pocket costs of group coverage. Principal Findings. The elasticity of demand for individual insurance by those without access to group insurance is about −.2 to −.4, as has been found in earlier studies. However, there are substantial differences in price responses among subgroups with low-income, young, and self-employed families showing the greatest response. Among workers offered group insurance, a decrease in individual premiums has very small effects on the choice to purchase individual coverage versus group coverage. Conclusions. Subsidy programs may make insurance more affordable for some families, but even sizeable subsidies are unlikely to solve the problem of the uninsured. We do not find evidence that subsidies to individual insurance will produce an unraveling of the employer-based health insurance system. en
dc.format.extent 4640 bytes
dc.format.mimetype application/pdf
dc.language.iso en en
dc.publisher Blackwell en
dc.rights.uri Publisher's copyright policy en
dc.rights.uri www.blackwellpublishing.com/static/journal_rights.asp?site=1 en
dc.subject Demand for health insurance en
dc.subject Safety net en
dc.subject Tax credits en
dc.subject.lcsh Insurance premiums en
dc.subject.lcsh Consumer behavior en
dc.subject.lcsh Insurance--Subsidies en
dc.title Subsidies and the demand for individual health insurance in California en
dc.type Journal Article en
dc.internal.authorurl Kanika Kapur (web page) en
dc.internal.authorurl http://www.ucd.ie/economics/staff/kkapur/kanika.kapur.htm en
dc.internal.authorcontactother Email: kanika.kapur@ucd.ie; Tel: 353 1 716 4624 en
dc.internal.authorid UCD0012 en
dc.internal.availability Full text not available en
dc.internal.webversions Publisher's version en
dc.internal.webversions http://dx.doi.org/10.1111/j.1475-6773.2004.00303.x en
dc.status Peer reviewed en
dc.identifier.volume 39 en
dc.identifier.issue 5 en
dc.identifier.startpage 1547 en
dc.identifier.endpage 1570 en
dc.identifier.doi 10.1111/j.1475-6773.2004.00303.x
dc.neeo.contributor Kapur|Kanika|aut|UCD0012
dc.neeo.contributor Marquis|M. Susan|aut|
dc.neeo.contributor Yegian|Jill M.|aut|
dc.neeo.contributor Buntin|Melinda J. Beeuwkes|aut|
dc.neeo.contributor Escarce|José J.|aut|


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