The Effect of Health Insurance Benefit Mandates on Premiums
James B. Bailey
Creighton University - Department of Economics; Temple University - Department of Economics
October 29, 2012
This paper examines the effects of laws mandating that health insurance cover specific conditions, procedures, providers and beneficiaries. Unlike previous work, this paper considers the market for employer-based health insurance rather than the much smaller individual market, and uses a panel data approach to account for unobserved heterogeneity among states. Using a fixed effects model, I find that the average mandate increases premiums by 0.44-1.11% annually. This implies that new mandates were responsible for 9-23% of all premium increases over the 1996-2011 period.
Number of Pages in PDF File: 11
Keywords: Health Insurance Premiums, Mandates
JEL Classification: I11, I13, I18
Date posted: July 16, 2012 ; Last revised: January 13, 2013
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