How Will The Affordable Care Act Change Employers’ Incentives To Offer Insurance?
AbstractThis study investigates how changes in the economic incentives created by the Affordable Care Act (ACA) will affect the probability that private-sector U.S. employers will offer health insurance. Using the Medical Expenditure Panel Survey Insurance Component for 2008-2010, we predict employers’ responses to key ACA provisions. Our simulations predict that overall demand for insurance will rise, driven by workers’ desire to avoid the individual mandate penalty and the availability of premium tax credits in exchanges. Our analyses also suggest that the average probability of an establishment offering insurance will decline from .83 to .66 with ACA implementation, although there is considerable variation by firm size, industry and union status.
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Bibliographic InfoPaper provided by Center for Economic Studies, U.S. Census Bureau in its series Working Papers with number 14-02.
Length: 31 pages
Date of creation: Jan 2014
Date of revision:
health insurance; Affordable Care Act; premium tax credits; employer behavior;
Find related papers by JEL classification:
- I1 - Health, Education, and Welfare - - Health
- I13 - Health, Education, and Welfare - - Health - - - Health Insurance, Public and Private
- J3 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs
This paper has been announced in the following NEP Reports:
- NEP-ALL-2014-03-01 (All new papers)
- NEP-HEA-2014-03-01 (Health Economics)
- NEP-IAS-2014-03-01 (Insurance Economics)
- NEP-LAB-2014-03-01 (Labour Economics)
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Blog mentionsAs found by EconAcademics.org, the blog aggregator for Economics research:
- Key research-oriented government agencies media members should know about
by ? in Journalist's Resource on 2014-02-28 02:12:08
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