The employer's decision to provide health insurance under the health reform law.
This article considers the employer's decision to continue or to drop health insurance coverage for its workers under the provisions of the 2010 health reform law, on the presumption that the primary influence on that decision is what will produce a higher worker standard of living during working years and retirement. The authors incorporate the most recent empirical estimates of health care costs into their long-horizon, optimal savings consumption model for workers. Their results show that the employer sponsorship of health plans is valuable for maintaining a consistent and higher living standard over the life cycle for middle- and upper-income households considered here, whereas exchange-purchased and subsidized coverage is more beneficial for lower income households (roughly 4-6% of illustrative single workers and 15-22% of working families).
Towers Watson, USA. Gaobo.Pang@towerswatson.com
Gaobo
G
Pang
Mark J
MJ
Warshawsky
D000328:Adult; D000368:Aged; D000369:Aged, 80 and over; D003659:Decision Making, Organizational; D005382:Financing, Personal / Q000191:economics; D006264:Health Benefit Plans, Employee / Q000191:economics*; D062265:Health Insurance Exchanges / Q000191:economics; D006801:Humans; D019458:Insurance Coverage / Q000191:economics; D008875:Middle Aged; D058991:Patient Protection and Affordable Care Act; D014481:United States; D055815:Young Adult