The Incidence of Mandated Health Insurance: Evidence from the Affordable Care Act Dependent Care Mandate

37 Pages Posted: 12 Jan 2016 Last revised: 12 Mar 2022

See all articles by Gopi Shah Goda

Gopi Shah Goda

Stanford University

Monica Farid

Stanford University

Jay Bhattacharya

Stanford University - Center for Primary Care and Outcomes Research; National Bureau of Economic Research (NBER)

Date Written: January 2016

Abstract

The dependent care mandate is one of the most popular provisions of the 2010 Affordable Care Act (ACA). This provision requires that employer-based insurance plans cover health care expenditures for workers with children 26 years old or younger. While there has been considerable scholarly and policy interest in the effects of this mandate on health insurance coverage among young adults, there has been little scholarly work measuring the costs and incidence of this mandate and who pays the costs of it. In our empirical work, we exploit the fact that some states had dependent care mandates in years prior to the passage of the ACA. Using data from the Survey of Income and Program Participation (SIPP), we find that workers at firms with employer-based coverage – whether or not they have dependent children – experience an annual reduction in wages of approximately $1,200. Our results imply that the marginal costs of mandated employer-based coverage expansions are not entirely borne only by the people whose coverage is expanded by the mandate.

Suggested Citation

Goda, Gopi Shah and Farid, Monica and Bhattacharya, Jayanta, The Incidence of Mandated Health Insurance: Evidence from the Affordable Care Act Dependent Care Mandate (January 2016). NBER Working Paper No. w21846, Available at SSRN: https://ssrn.com/abstract=2713570

Gopi Shah Goda (Contact Author)

Stanford University ( email )

SIEPR
366 Galvez St.
Stanford, CA 94305
United States
6507360480 (Phone)

Monica Farid

Stanford University ( email )

Stanford, CA 94305
United States

Jayanta Bhattacharya

Stanford University - Center for Primary Care and Outcomes Research ( email )

Center for Health Policy
179 Encina Commons
Stanford, CA 94305-6019
United States
650-736-0404 (Phone)
650-723-1919 (Fax)

National Bureau of Economic Research (NBER)

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Cambridge, MA 02138
United States

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