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Tax Incentives as a Solution to the Uninsured: Evidence from the Self-Employed

  • Tracy L. Regan

    ()

    (Department of Economics, University of Miami)

  • Gulcin Gumus

    ()

    (Department of Health and Policy & Management and Department of Economics, Florida International University)

Between 1996 and 2003, a series of amendments were made to the Tax Reform Act of 1986 that gradually increased the tax credit for health insurance purchases by the self- employed from 25 to 100 percent. We study how these changes have in uenced the likelihood that a self-employed person has health insurance coverage as the policy holder. The Cur- rent Population Survey is used to construct a data set corresponding to 1995-2005. Both the di erence-in-di erence and price elasticity of demand estimates suggest that the series of tax credits did not provide sucient incentives for the self-employed to obtain health insurance coverage.

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File URL: http://moya.bus.miami.edu/~tregan/Insurance.pdf
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Paper provided by University of Miami, Department of Economics in its series Working Papers with number 0709.

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Length: 42 pages
Date of creation: May 2006
Date of revision: Oct 2007
Publication status: Forthcoming: Under Review
Handle: RePEc:mia:wpaper:0709
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Web page: http://www.bus.miami.edu/faculty-and-research/academic-departments/economics/index.html

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  15. V. Joseph Hotz & John Karl Scholz, 2006. "Examining the Effect of the Earned Income Tax Credit on the Labor Market Participation of Families on Welfare," NBER Working Papers 11968, National Bureau of Economic Research, Inc.
  16. Brigitte C. Madrian, 2005. "The U.S. health care system and labor markets," Conference Series ; [Proceedings], Federal Reserve Bank of Boston, vol. 50(Jun), pages 137-163.
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  26. Gruber, Jonathan & Madrian, Brigitte C., 1997. "Employment separation and health insurance coverage," Journal of Public Economics, Elsevier, vol. 66(3), pages 349-382, December.
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  28. Heim, Bradley T. & Lurie, Ithai Z., 2009. "Do increased premium subsidies affect how much health insurance is purchased? Evidence from the self-employed," Journal of Health Economics, Elsevier, vol. 28(6), pages 1197-1210, December.
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