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The Effect of Massachusetts' Health Reform on Employer-Sponsored Insurance Premiums

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  • Cogan John F

    (Stanford University)

  • Hubbard R. Glenn

    (Graduate School of Business of Columbia University)

  • Kessler Daniel

    (Stanford University)

Abstract

In this paper, we use publicly available data from the Medical Expenditure Panel Survey - Insurance Component (MEPS-IC) to investigate the effect of Massachusetts' health reform plan on employer-sponsored insurance premiums. We tabulate premium growth for private-sector employers in Massachusetts and the United States as a whole for 2004 - 2008. We estimate the effect of the plan as the difference in premium growth between Massachusetts and the United States between 2006 and 2008--that is, before versus after the plan--over and above the difference in premium growth for 2004 to 2006. We find that health reform in Massachusetts increased single-coverage employer-sponsored insurance premiums by about 6 percent, or $262. Although our research design has important limitations, it does suggest that policy makers should be concerned about the consequences of health reform for the cost of private insurance.

Suggested Citation

  • Cogan John F & Hubbard R. Glenn & Kessler Daniel, 2010. "The Effect of Massachusetts' Health Reform on Employer-Sponsored Insurance Premiums," Forum for Health Economics & Policy, De Gruyter, vol. 13(2), pages 1-8, June.
    • Handle: RePEc:bpj:fhecpo:v:13:y:2010:i:2:n:5
    DOI: 10.2202/1558-9544.1204
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    References listed on IDEAS

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    1. Allan P. O. Williams, 2006. "Impact of Strategies," Palgrave Macmillan Books, in: The Rise of Cass Business School, chapter 13, pages 167-181, Palgrave Macmillan.
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    Cited by:

    1. Chad Cotti & Erik Nesson & Nathan Tefft, 2019. "Impacts of the ACA Medicaid expansion on health behaviors: Evidence from household panel data," Health Economics, John Wiley & Sons, Ltd., vol. 28(2), pages 219-244, February.
    2. Jonathan Gruber, 2011. "The Impacts of the Affordable Care Act: How Reasonable Are the Projections?," NBER Working Papers 17168, National Bureau of Economic Research, Inc.
    3. Laurence C. Baker & M. Kate Bundorf & Daniel P. Kessler, 2015. "Expanding Patients' Property Rights in Their Medical Records," American Journal of Health Economics, MIT Press, vol. 1(1), pages 82-100, Winter.
    4. Laurence C. Baker & Kate Bundorf & Daniel Kessler, 2014. "Expanding Patients' Property Rights In Their Medical Records," NBER Working Papers 20565, National Bureau of Economic Research, Inc.

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    Keywords

    health reform;

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