Does Chronic Illness Affect the Adequacy of Health Insurance Coverage?

Syracuse University Center for Policy Research Working Paper No. 20

39 Pages Posted: 15 Apr 2011

See all articles by Eleanor D. Kinney

Eleanor D. Kinney

Indiana University Robert H. McKinney School of Law

Thomas J. Kniesner

Claremont Graduate University - Department of Economic Sciences; Syracuse University - Department of Economics; IZA

Kevin Stroupe

Department of Veterans Affairs (VA)

Date Written: March 1, 2000

Abstract

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.

JEL Classification: I11, I12, I18

Suggested Citation

Kinney, Eleanor D. and Kniesner, Thomas J. and Stroupe, Kevin, Does Chronic Illness Affect the Adequacy of Health Insurance Coverage? (March 1, 2000). Syracuse University Center for Policy Research Working Paper No. 20, Available at SSRN: https://ssrn.com/abstract=1808040 or http://dx.doi.org/10.2139/ssrn.1808040

Eleanor D. Kinney

Indiana University Robert H. McKinney School of Law ( email )

530 West New York Street
Indianapolis, IN 46202
United States
2741912 (Phone)

HOME PAGE: http://indylaw.indiana.edu/people/profile.cfm?Id=17

Thomas J. Kniesner (Contact Author)

Claremont Graduate University - Department of Economic Sciences ( email )

Claremont, CA 91711
United States

Syracuse University - Department of Economics ( email )

Syracuse, NY 13244-1020
United States

IZA

P.O. Box 7240
Bonn, D-53072
Germany

Kevin Stroupe

Department of Veterans Affairs (VA) ( email )

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