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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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