The Effect of Health Insurance Benefit Mandates on Premiums

11 Pages Posted: 16 Jul 2012 Last revised: 13 Jan 2013

James B. Bailey

Creighton University - Department of Economics; Temple University - Department of Economics

Multiple version iconThere are 2 versions of this paper

Date Written: October 29, 2012

Abstract

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.

Keywords: Health Insurance Premiums, Mandates

JEL Classification: I11, I13, I18

Suggested Citation

Bailey, James B., The Effect of Health Insurance Benefit Mandates on Premiums (October 29, 2012). Available at SSRN: https://ssrn.com/abstract=2107945 or http://dx.doi.org/10.2139/ssrn.2107945

James B. Bailey (Contact Author)

Creighton University - Department of Economics ( email )

2500 California Plaza
Omaha, NE 68178
United States

Temple University - Department of Economics ( email )

Philadelphia, PA 19122
United States

HOME PAGE: http://sites.temple.edu/jamesbailey/

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