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Did the Affordable Care Act's Dependent Coverage Mandate Increase Premiums?

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  • Briggs Depew

    ()

  • James Bailey

    ()

Abstract

We investigate the impact of the Affordable Care Act's dependent coverage mandate on insurance premiums. The expansion of dependent coverage under the ACA allows young adults to remain on their parent's private health insurance plans until the age of 26. We find that the mandate has led to a 2.5-2.8 percent increase in premiums for health insurance plans that cover children, relative to single-coverage plans. We find no evidence that the mandate caused an increase in the amount of the employee contribution for family plans.

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Paper provided by Department of Economics, Louisiana State University in its series Departmental Working Papers with number 2014-07.

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Handle: RePEc:lsu:lsuwpp:2014-07

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Postal: Baton Rouge, LA 70803-6306
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  1. Joanna N. Lahey, 2011. "The Efficiency of a Group-Specific Mandated Benefit Revisited: The Effect of Infertility Mandates," Upjohn Working Papers and Journal Articles 11-175, W.E. Upjohn Institute for Employment Research.
  2. Gruber, Jonathan & McKnight, Robin, 2003. "Why did employee health insurance contributions rise?," Journal of Health Economics, Elsevier, vol. 22(6), pages 1085-1104, November.
  3. James Bailey, 2013. "The Effect of Health Insurance Benefit Mandates on Premiums," Eastern Economic Journal, Palgrave Macmillan, vol. 40(1), pages 119-127, December.
  4. Bailey, James, 2013. "Who pays for obesity? Evidence from health insurance benefit mandates," Economics Letters, Elsevier, vol. 121(2), pages 287-289.
  5. Liran Einav & Amy Finkelstein & Mark R. Cullen, 2010. "Estimating Welfare in Insurance Markets Using Variation in Prices," The Quarterly Journal of Economics, MIT Press, vol. 125(3), pages 877-921, August.
  6. Martin B. Hackmann & Jonathan T. Kolstad & Amanda E. Kowalski, 2012. "Health Reform, Health Insurance, and Selection: Estimating Selection into Health Insurance Using the Massachusetts Health Reform," NBER Working Papers 17748, National Bureau of Economic Research, Inc.
  7. Yaa Akosa Antwi & Asako S. Moriya & Kosali Simon, 2012. "Effects of Federal Policy to Insure Young Adults: Evidence from the 2010 Affordable Care Act Dependent Coverage Mandate," NBER Working Papers 18200, National Bureau of Economic Research, Inc.
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