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The Demand for Health Insurance among Uninsured Americans: Results of a Survey Experiment and Implications for Policy

  • Alan B. Krueger

    (Princeton University)

  • Ilyana Kuziemko

    (Princeton University and NBER)

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    Most existing work on the price elasticity of demand for health insurance focuses on employees' decisions to enroll in employer-provided plans. Yet any attempt to achieve universal coverage must focus on the uninsured, the vast majority of whom are not offered employer-sponsored insurance. In the summer of 2008, we conducted a survey experiment to assess the willingness to pay for a health plan among a large sample of uninsured Americans. The experiment yields price elasticities substantially greater than those found in most previous studies. We use these results to estimate coverage expansion under the A ordable Care Act, with and without an individual mandate. We estimate that 39 million uninsured individuals would gain coverage and find limited evidence of adverse selection.

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    File URL: http://arks.princeton.edu/ark:/88435/dsp01bc386j227
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    Paper provided by Princeton University, Department of Economics, Industrial Relations Section. in its series Working Papers with number 1310.

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    Date of creation: Apr 2011
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    Handle: RePEc:pri:indrel:565
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