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Employer choices of family premium sharing

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  • Jessica Vistnes
  • Michael Morrisey
  • Gail Jensen

Abstract

In 1997, nearly two-thirds of married couples with children under age 18 were dual-earner couples. Such families may have a variety of insurance options available to them. If so, declining a high employee premium contribution may be a mechanism for one spouse to take money wages in lieu of coverage while the other spouse takes coverage rather than high wages. Employers may use these preferences and the size of premium contributions to encourage workers to obtain family coverage through their spouse. The purpose of this paper is to explore the effects of labor force composition, particularly the proportion of dual-earner couples in the labor market, on the marginal employee premium contribution (marginal EPC) for family coverage. We analyze data from the 1997–2001 Medical Expenditure Panel Survey— Insurance Component (MEPS-IC) List Sample of private establishments. We find strong evidence that the marginal EPC for family coverage is higher when there is a larger concentration of women in the workforce, but only in markets with a higher proportion of dual-earner households. Copyright Springer Science + Business Media, Inc. 2006

Suggested Citation

  • Jessica Vistnes & Michael Morrisey & Gail Jensen, 2006. "Employer choices of family premium sharing," International Journal of Health Economics and Management, Springer, vol. 6(1), pages 25-47, March.
    • Handle: RePEc:kap:ijhcfe:v:6:y:2006:i:1:p:25-47
    DOI: 10.1007/s10754-006-5560-y
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    References listed on IDEAS

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    Cited by:

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    2. Fekete Szilveszter & Sucala Lucia & Radulescu Gentiana & Oprean Delia, 2010. "Theoretical And Practical Approach Regarding Density And Penetration Insurance On Accident & Health Premiums," Annals of Faculty of Economics, University of Oradea, Faculty of Economics, vol. 1(1), pages 351-356, July.
    3. Rosemary Hyson & Alice Zawacki, 2008. "Health-Related Research Using Confidential U.S. Census Bureau Data," Working Papers 08-21, Center for Economic Studies, U.S. Census Bureau.

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