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

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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.

Suggested Citation

  • Briggs Depew & James Bailey, 2014. "Did the Affordable Care Act's Dependent Coverage Mandate Increase Premiums?," Departmental Working Papers 2014-07, Department of Economics, Louisiana State University.
  • Handle: RePEc:lsu:lsuwpp:2014-07
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    File URL: http://bus.lsu.edu/McMillin/Working_Papers/pap14_07.pdf
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    References listed on IDEAS

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    1. Depew, Briggs, 2015. "The effect of state dependent mandate laws on the labor supply decisions of young adults," Journal of Health Economics, Elsevier, vol. 39(C), pages 123-134.
    2. Katherine Baicker & Amitabh Chandra, 2006. "The Labor Market Effects of Rising Health Insurance Premiums," Journal of Labor Economics, University of Chicago Press, vol. 24(3), pages 609-634, July.
    3. Bailey, James, 2013. "Who pays for obesity? Evidence from health insurance benefit mandates," Economics Letters, Elsevier, vol. 121(2), pages 287-289.
    4. Gruber, Jonathan, 1994. "The Incidence of Mandated Maternity Benefits," American Economic Review, American Economic Association, vol. 84(3), pages 622-641, June.
    5. Liran Einav & Amy Finkelstein & Mark R. Cullen, 2010. "Estimating Welfare in Insurance Markets Using Variation in Prices," The Quarterly Journal of Economics, Oxford University Press, vol. 125(3), pages 877-921.
    6. Leemore S. Dafny, 2010. "Are Health Insurance Markets Competitive?," American Economic Review, American Economic Association, vol. 100(4), pages 1399-1431, September.
    7. Cardella, Eric & Depew, Briggs, 2014. "The effect of health insurance coverage on the reported health of young adults," Economics Letters, Elsevier, vol. 124(3), pages 406-410.
    8. Yaa Akosa Antwi & Asako S. Moriya & Kosali Simon, 2013. "Effects of Federal Policy to Insure Young Adults: Evidence from the 2010 Affordable Care Act's Dependent-Coverage Mandate," American Economic Journal: Economic Policy, American Economic Association, vol. 5(4), pages 1-28, November.
    9. Joanna N. Lahey, 2012. "The efficiency of a group‐specific mandated benefit revisited: The effect of infertility mandates," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 31(1), pages 63-92, December.
    10. Phillip B. Levine & Robin McKnight & Samantha Heep, 2011. "How Effective Are Public Policies to Increase Health Insurance Coverage among Young Adults?," American Economic Journal: Economic Policy, American Economic Association, vol. 3(1), pages 129-156, February.
    11. 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," American Economic Review, American Economic Association, vol. 102(3), pages 498-501, May.
    12. Gruber, Jonathan & McKnight, Robin, 2003. "Why did employee health insurance contributions rise?," Journal of Health Economics, Elsevier, vol. 22(6), pages 1085-1104, November.
    13. James Bailey, 2013. "The Effect of Health Insurance Benefit Mandates on Premiums," Eastern Economic Journal, Palgrave Macmillan;Eastern Economic Association, vol. 40(1), pages 119-127, December.
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    Cited by:

    1. Bradley Heim & Ithai Lurie & Kosali Simon, 2017. "Did the Affordable Care Act Young Adult Provision Affect Labor Market Outcomes? Analysis Using Tax Data," NBER Working Papers 23471, National Bureau of Economic Research, Inc.
    2. Mark Pauly & Scott Harrington & Adam Leive, 2015. "“Sticker Shock” in Individual Insurance under Health Reform?," American Journal of Health Economics, MIT Press, vol. 1(4), pages 494-514, Fall.
    3. Joelle Abramowitz, 2017. "Planning Parenthood: The Affordable Care Act Young Adult Provision and Pathways to Fertility," Working Papers 17-65, Center for Economic Studies, U.S. Census Bureau.
    4. Gopi Shah Goda & Monica Farid & Jay Bhattacharya, 2016. "The Incidence of Mandated Health Insurance: Evidence from the Affordable Care Act Dependent Care Mandate," NBER Working Papers 21846, National Bureau of Economic Research, Inc.
    5. repec:kap:sbusec:v:49:y:2017:i:3:d:10.1007_s11187-017-9856-8 is not listed on IDEAS
    6. repec:kap:reveho:v:15:y:2017:i:4:d:10.1007_s11150-017-9366-0 is not listed on IDEAS
    7. Steve Cicala & Ethan M.J. Lieber & Victoria Marone, 2017. "Cost of Service Regulation in U.S. Health Care: Minimum Medical Loss Ratios," NBER Working Papers 23353, National Bureau of Economic Research, Inc.
    8. repec:pal:easeco:v:43:y:2017:i:4:d:10.1057_eej.2015.49 is not listed on IDEAS
    9. Molly Frean & Jonathan Gruber & Benjamin D. Sommers, 2016. "Premium Subsidies, the Mandate, and Medicaid Expansion: Coverage Effects of the Affordable Care Act," NBER Working Papers 22213, National Bureau of Economic Research, Inc.
    10. Juergen Jung & Vinish Shrestha, 2016. "The Affordable Care Act and College Enrollment Decisions," Working Papers 2016-16, Towson University, Department of Economics, revised May 2017.
    11. Antwi, Yaa Akosa & Maclean, J. Catherine, 2017. "State Health Insurance Mandates and Labor Market Outcomes: New Evidence on Old Questions," IZA Discussion Papers 10578, Institute for the Study of Labor (IZA).

    More about this item

    JEL classification:

    • I11 - Health, Education, and Welfare - - Health - - - Analysis of Health Care Markets
    • I13 - Health, Education, and Welfare - - Health - - - Health Insurance, Public and Private
    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health

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