Do increased premium subsidies affect how much health insurance is purchased? Evidence from the self-employed.
This paper estimates the effect of recent federal and state level increases in the deductibility of health insurance premiums for self-employed individuals, which reduced the after-tax price of health insurance, on both the take-up of coverage and the amount of insurance purchased. Using a panel of tax returns filed by self-employed taxpayers from 1999 to 2004, we estimate a take-up elasticity of -0.316 overall, with significantly higher elasticities for single taxpayers. On the intensive margin, we find an elasticity of -0.733 overall.
Heim
Bradley T
BT
Office of Tax Analysis, US Department of Treasury, 1500 Pennsylvania Ave NW, Washington, DC 20220, United States. Bradley.Heim@do.treas.gov
Lurie
Ithai Z
IZ
D000328:Adult; D003132:Commerce / Q000639:trends; D004651:Employment; D005380:Financing, Government / Q000191:economics*; D006801:Humans; D007348:Insurance, Health / Q000191:economics / Q000706:statistics & numerical data*; D008875:Middle Aged; D013660:Taxes; D014481:United States