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Employee Costs and the Decline in Health Insurance Coverage

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  • David M. Cutler

Abstract

This paper examines why health insurance coverage fell despite the lengthy economic boom of the 1990s. I show that insurance coverage declined primarily because fewer workers took up coverage when offered it, not because fewer workers were offered insurance or were eligible for it. The reduction in take-up is associated with the increase in employee costs for health insurance. Estimates suggest that increased costs to employees can explain the entire decline in take-up rates in the 1990s.

Suggested Citation

  • David M. Cutler, 2002. "Employee Costs and the Decline in Health Insurance Coverage," NBER Working Papers 9036, National Bureau of Economic Research, Inc.
    • Handle: RePEc:nbr:nberwo:9036
    Note: EH PE
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    More about this item

    JEL classification:

    • I10 - Health, Education, and Welfare - - Health - - - General
    • J32 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Nonwage Labor Costs and Benefits; Retirement Plans; Private Pensions

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