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The Effect of Health Insurance on Workers' Compensation Filing: Evidence from the Affordable Care Act's Age-Based Threshold for Dependent Coverage

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Abstract

This paper identifies the effect of health insurance on workers' compensation (WC) filing for young adults by implementing a regression discontinuity design using WC medical claims data from Texas. The results suggest health insurance factors into the decision to have WC pay for discretionary care. The implied instrumental variables estimates suggest a 10 percentage point decrease in health insurance coverage increases WC bills by 15.3 percent. Despite the large impact of health insurance on the number of WC bills, the additional cost to WC at age 26 appears to be small as most of the increase comes from small bills.

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  • Marcus Dillender, 2015. "The Effect of Health Insurance on Workers' Compensation Filing: Evidence from the Affordable Care Act's Age-Based Threshold for Dependent Coverage," Upjohn Working Papers 15-232, W.E. Upjohn Institute for Employment Research.
    • Handle: RePEc:upj:weupjo:15-232
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    26. Alison Morantz, 2010. "Opting Out of Workers' Compensation in Texas: A Survey of Large, Multistate Nonsubscribers," NBER Chapters, in: Regulation vs. Litigation: Perspectives from Economics and Law, pages 197-238, National Bureau of Economic Research, Inc.
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    Cited by:

    1. Yörük, Barış K., 2023. "Does public policy affect attitudes? Evidence from age-based health insurance coverage policies in the United States," Journal of Economic Behavior & Organization, Elsevier, vol. 205(C), pages 287-302.
    2. Fitzpatrick, Maria D. & Moore, Timothy J., 2018. "The mortality effects of retirement: Evidence from Social Security eligibility at age 62," Journal of Public Economics, Elsevier, vol. 157(C), pages 121-137.
    3. Yörük Barış K., 2018. "Health insurance coverage and health care utilization: Evidence from the Affordable Care Act’s dependent coverage mandate," Forum for Health Economics & Policy, De Gruyter, vol. 21(2), pages 1-24, December.
    4. Rahi Abouk & Keshar M. Ghimire & Johanna Catherine Maclean & David Powell, 2023. "Pain Management and Work Capacity: Evidence From Workers’ Compensation and Marijuana Legalization," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 42(3), pages 737-770, June.
    5. Marcus Dillender, 2021. "Climate Change and Occupational Health: Are There Limits to Our Ability to Adapt?," Journal of Human Resources, University of Wisconsin Press, vol. 56(1), pages 184-224.
    6. Marika Cabral & Marcus Dillender, 2020. "The Impact of Benefit Generosity on Workers’ Compensation Claims: Evidence and Implications," NBER Working Papers 26976, National Bureau of Economic Research, Inc.
    7. Michael Levere & Heinrich Hock & Nancy Early, 2021. "How does losing health insurance affect disability claims? Evidence from the Affordable Care Act's dependent care mandate," Health Economics, John Wiley & Sons, Ltd., vol. 30(5), pages 932-950, May.
    8. Courtney B. Baggett & Cassandra R. Cole & George Crowley & E. Tice Sirmans, 2020. "Spillover effects of increased health insurance enrollment on workers’ compensation insurance," Risk Management and Insurance Review, American Risk and Insurance Association, vol. 23(1), pages 53-74, March.
    9. Michael Levere & Heinrich Hock & Nancy Early, "undated". "How Does Losing Health Insurance Affect Disability Claims? Evidence from the Affordable Care Act’s Dependent Care Mandate," Mathematica Policy Research Reports a06bcb7b194241b5a2f1c6713, Mathematica Policy Research.
    10. Paul Heaton & Caleb Flint, 2021. "Medicaid coverage expansions and liability insurance," Journal of Risk & Insurance, The American Risk and Insurance Association, vol. 88(1), pages 29-51, March.
    11. Marika Cabral & Can Cui & Michael Dworsky, 2019. "The Demand for Insurance and Rationale for a Mandate: Evidence from Workers’ Compensation Insurance," NBER Working Papers 26103, National Bureau of Economic Research, Inc.
    12. Ghosh, Ausmita & Simon, Kosali & Sommers, Benjamin D., 2019. "The Effect of Health Insurance on Prescription Drug Use Among Low-Income Adults:Evidence from Recent Medicaid Expansions," Journal of Health Economics, Elsevier, vol. 63(C), pages 64-80.
    13. Li, Xiaoxue & Ye, Jinqi, 2017. "The spillover effects of health insurance benefit mandates on public insurance coverage: Evidence from veterans," Journal of Health Economics, Elsevier, vol. 55(C), pages 45-60.
    14. Tu T. Nguyen & Barış K. Yörük, 2020. "Aging out of dependent coverage and the effects on the use of inpatient medical care," International Journal of Health Economics and Management, Springer, vol. 20(4), pages 381-390, December.
    15. Dillender, Marcus, 2018. "What happens when the insurer can say no? Assessing prior authorization as a tool to prevent high-risk prescriptions and to lower costs," Journal of Public Economics, Elsevier, vol. 165(C), pages 170-200.

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    More about this item

    Keywords

    Workers’ compensation; Moral hazard; Health insurance; Affordable Care Act;
    All these keywords.

    JEL classification:

    • I13 - Health, Education, and Welfare - - Health - - - Health Insurance, Public and Private
    • J32 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Nonwage Labor Costs and Benefits; Retirement Plans; Private Pensions
    • J38 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Public Policy

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