Price and the demand for nongroup health insurance.
In light of recent interest in tax credits and other price-based incentives to stimulate the purchase of insurance, this study estimates the price elasticity of demand for nongroup health insurance for single workers without access to employer-sponsored insurance. Our premium measure explicitly accounts for two components that have not been examined in previous studies: 1) health status, and 2) the effect of state-level premium rating regulations. We estimate a price elasticity of -.59, which, given the low rate of initial coverage in our sample (16.4%), translates to a small effect on the uninsured.
Auerbach
David
D
Health and Human Resources Division, Congressional Budget Office, USA. David.auerbach@cbo.gov
Ohri
Sabina
S
D000328:Adult; D003365:Costs and Cost Analysis; D005260:Female; D005382:Financing, Personal / Q000191:economics*; D033161:Government Regulation; D006304:Health Status; D006801:Humans; D007348:Insurance, Health / Q000191:economics*; D008297:Male; D008875:Middle Aged; D017059:Models, Econometric; D012923:Social Class