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The Demand for Health Insurance among Uninsured Americans: Results of a Survey Experiment and Implications for Policy

Author

Listed:
  • Alan B. Krueger

    (Princeton University)

  • Ilyana Kuziemko

    (Princeton University and NBER)

Abstract

Most existing work on the price elasticity of demand for health insurance focuses on employees' decisions to enroll in employer-provided plans. Yet any attempt to achieve universal coverage must focus on the uninsured, the vast majority of whom are not offered employer-sponsored insurance. In the summer of 2008, we conducted a survey experiment to assess the willingness to pay for a health plan among a large sample of uninsured Americans. The experiment yields price elasticities substantially greater than those found in most previous studies. We use these results to estimate coverage expansion under the Affordable Care Act, with and without an individual mandate. We estimate that 39 million uninsured individuals would gain coverage and find limited evidence of adverse selection.

Suggested Citation

  • Alan B. Krueger & Ilyana Kuziemko, 2011. "The Demand for Health Insurance among Uninsured Americans: Results of a Survey Experiment and Implications for Policy," Working Papers 1310, Princeton University, Department of Economics, Industrial Relations Section..
    • Handle: RePEc:pri:indrel:565
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    health insurance; universal coverage; Affordable Care Act; price elasticity of demand;
    All these keywords.

    JEL classification:

    • D19 - Microeconomics - - Household Behavior - - - Other
    • H75 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Government: Health, Education, and Welfare
    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health
    • J32 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Nonwage Labor Costs and Benefits; Retirement Plans; Private Pensions

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