Does Chronic Illness Affect the Adequacy of Health Insurance Coverage?
Eleanor D. Kinney
Indiana University Robert H. McKinney School of Law
Thomas J. Kniesner
Syracuse University - Department of Economics; Institute for the Study of Labor (IZA)
Department of Veterans Affairs (VA)
March 1, 2000
Syracuse University Center for Policy Research Working Paper No. 20
Although chronically ill individuals need protection against high medical expenses, they often have difficulty obtaining adequate insurance coverage due to medical underwriting practices used to classify and price risks and to define and limit coverage for individuals and groups. Using data from healthy and chronically ill individuals in Indiana, we found that illness decreased the probability of having adequate insurance, particularly among single individuals. Chronic illness decreased the probability of having adequate coverage by about 10 percentage points among all individuals and by about 25 percentage points among single individuals. Preexisting condition exclusions were a major source of inadequate insurance. Our results emphasize the impact of enforcing the Health Insurance Portability and Accountability Act (HIPAA) of 1997, which limits preexisting condition exclusions.
Number of Pages in PDF File: 39
JEL Classification: I11, I12, I18working papers series
Date posted: April 15, 2011
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