Employee Costs and the Decline in Health Insurance Coverage

41 Pages Posted: 8 Jul 2002 Last revised: 28 Oct 2010

See all articles by David M. Cutler

David M. Cutler

Harvard University - Department of Economics; National Bureau of Economic Research (NBER); Harvard University - Harvard Kennedy School (HKS)

Date Written: July 2002

Abstract

This paper examines why health insurance coverage fell despite the lengthy economic boom of the 1990s. I show that insurance coverage declined primarily because fewer workers took up coverage when offered it, not because fewer workers were offered insurance or were eligible for it. The reduction in take-up is associated with the increase in employee costs for health insurance. Estimates suggest that increased costs to employees can explain the entire decline in take-up rates in the 1990s.

Suggested Citation

Cutler, David M., Employee Costs and the Decline in Health Insurance Coverage (July 2002). NBER Working Paper No. w9036. Available at SSRN: https://ssrn.com/abstract=318461

David M. Cutler (Contact Author)

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