Search

A study on the effect of premium on the decision to enroll in employer health insurance and other benefit plans is presented. The previous estimate of the effects of the insurance was biased due to the presence of unobservable demand or plan quality. In this study the problem is solved by the introduction of three different price regimes. It is observed that workers are insensitive to price in health insurance take up, where as they are sensitive to decisions on taking up dental insurance, vision plans, wellness benefits, etc. therefore the influence of premium subsidies is negligible in increasing the insurance rates of workers who are already having the employer insurance.

Using the 1996 Medical Expenditure Panel Survey, the authors investigate differences between households with two earners and those with a single earner in households' access to employer-based health insurance and the generosity of insurance options. They examine whether a household has an offer of coverage, whether a household holds coverage, and whether all household members are covered. They also explore whether two-earner households have more generous options as measured by the number and types of plans available, as well as contribution requirements. The authors find that having a second earner in the household dramatically improves both access to employer health insurance and the generosity of health plan choices, particularly for workers generally acknowledged to have little access, such as part-time workers and workers in small establishments. [ABSTRACT FROM AUTHOR]