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Who pays for obesity? Evidence from health insurance benefit mandates

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  • Bailey, James

Abstract

Is there an obesity externality? In the late 1990s and early 2000s, many state governments began requiring health insurance plans to cover treatments for diabetes. Using difference-in-difference analysis of restricted geocode data from the 1979 National Longitudinal Survey of Youth to compare wages across states with and without diabetes mandates, I find that obese people pay for all of their own increased health costs in the form of lower wages, rather than passing them on to employers, insurers, and co-workers.

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File URL: http://www.sciencedirect.com/science/article/pii/S0165176513004023
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Bibliographic Info

Article provided by Elsevier in its journal Economics Letters.

Volume (Year): 121 (2013)
Issue (Month): 2 ()
Pages: 287-289

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Handle: RePEc:eee:ecolet:v:121:y:2013:i:2:p:287-289

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Web page: http://www.elsevier.com/locate/ecolet

Related research

Keywords: Obesity; Employer-based health insurance; NLSY geocode; Diabetes mandates;

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References

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  1. Bhattacharya, Jay & Bundorf, M. Kate, 2009. "The incidence of the healthcare costs of obesity," Journal of Health Economics, Elsevier, vol. 28(3), pages 649-658, May.
  2. James Bailey, 2013. "The Effect of Health Insurance Benefit Mandates on Premiums," Eastern Economic Journal, Palgrave Macmillan, vol. 40(1), pages 119-127, December.
  3. Gruber, Jonathan, 1994. "The Incidence of Mandated Maternity Benefits," American Economic Review, American Economic Association, vol. 84(3), pages 622-41, June.
  4. Summers, Lawrence H, 1989. "Some Simple Economics of Mandated Benefits," American Economic Review, American Economic Association, vol. 79(2), pages 177-83, May.
  5. Jay Bhattacharya & Neeraj Sood, 2011. "Who Pays for Obesity?," Journal of Economic Perspectives, American Economic Association, vol. 25(1), pages 139-58, Winter.
  6. Joanna N. Lahey, 2012. "The efficiency of a groupā€specific mandated benefit revisited: The effect of infertility mandates," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 31(1), pages 63-92, December.
  7. Gruber, Jonathan, 1994. "State-mandated benefits and employer-provided health insurance," Journal of Public Economics, Elsevier, vol. 55(3), pages 433-464, November.
  8. Kowalski Amanda E. & Congdon William J. & Showalter Mark H., 2008. "State Health Insurance Regulations and the Price of High-Deductible Policies," Forum for Health Economics & Policy, De Gruyter, vol. 11(2), pages 1-26, November.
  9. David N van der Goes & Justin Wang & Katharine C Wolchik, 2011. "Effect of State Health Insurance Mandates on Employer-provided Health Insurance," Eastern Economic Journal, Palgrave Macmillan, vol. 37(4), pages 437-449.
  10. Jonathan Klick & Thomas Stratmann, 2007. "Diabetes Treatments and Moral Hazard," Journal of Law and Economics, University of Chicago Press, vol. 50, pages 519-538.
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Cited by:
  1. Briggs Depew & James Bailey, . "Did the Affordable Care Act's Dependent Coverage Mandate Increase Premiums?," Departmental Working Papers 2014-07, Department of Economics, Louisiana State University.

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