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The Effect of Massachusetts' Health Reform on Employer-Sponsored Insurance Premiums

Author

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  • Cogan John F

    (Stanford University)

  • Hubbard R. Glenn

    (Graduate School of Business of Columbia University)

  • Kessler Daniel

    (Stanford University)

Abstract

In this paper, we use publicly available data from the Medical Expenditure Panel Survey - Insurance Component (MEPS-IC) to investigate the effect of Massachusetts' health reform plan on employer-sponsored insurance premiums. We tabulate premium growth for private-sector employers in Massachusetts and the United States as a whole for 2004 - 2008. We estimate the effect of the plan as the difference in premium growth between Massachusetts and the United States between 2006 and 2008--that is, before versus after the plan--over and above the difference in premium growth for 2004 to 2006. We find that health reform in Massachusetts increased single-coverage employer-sponsored insurance premiums by about 6 percent, or $262. Although our research design has important limitations, it does suggest that policy makers should be concerned about the consequences of health reform for the cost of private insurance.

Suggested Citation

  • Cogan John F & Hubbard R. Glenn & Kessler Daniel, 2010. "The Effect of Massachusetts' Health Reform on Employer-Sponsored Insurance Premiums," Forum for Health Economics & Policy, De Gruyter, vol. 13(2), pages 1-8, June.
    • Handle: RePEc:bpj:fhecpo:v:13:y:2010:i:2:n:5
    DOI: 10.2202/1558-9544.1204
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    References listed on IDEAS

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    1. Allan P. O. Williams, 2006. "Impact of Strategies," Palgrave Macmillan Books, in: The Rise of Cass Business School, chapter 13, pages 167-181, Palgrave Macmillan.
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    Cited by:

    1. Chad Cotti & Erik Nesson & Nathan Tefft, 2019. "Impacts of the ACA Medicaid expansion on health behaviors: Evidence from household panel data," Health Economics, John Wiley & Sons, Ltd., vol. 28(2), pages 219-244, February.
    2. Laurence C. Baker & Kate Bundorf & Daniel Kessler, 2014. "Expanding Patients' Property Rights In Their Medical Records," NBER Working Papers 20565, National Bureau of Economic Research, Inc.
    3. Jonathan Gruber, 2011. "The Impacts of the Affordable Care Act: How Reasonable Are the Projections?," NBER Working Papers 17168, National Bureau of Economic Research, Inc.
    4. Laurence C. Baker & M. Kate Bundorf & Daniel P. Kessler, 2015. "Expanding Patients' Property Rights in Their Medical Records," American Journal of Health Economics, MIT Press, vol. 1(1), pages 82-100, Winter.

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    Keywords

    health reform;

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