It’s About Time: Effects of the Affordable Care Act Dependent Coverage Mandate on Time Use

January 10, 2018

We examine how the Affordable Care Act’s dependent coverage mandate (DCM) affected young adults’ time allocation. Exploiting more accurate measures from the American Time Use Surveys, we find that the DCM reduced labor supply. The question then arises, what have these adults done with the extra time? Estimates suggest a reduction in job‐lock, as well as in the duration of the average doctor’s visit, including time spent waiting and receiving care. The latter effect is consistent with substitution from emergency‐department utilization toward more routine care. Estimates suggest that the extra time has gone into socializing, and into educational and job‐search activities.

via It’s About Time: Effects of the Affordable Care Act Dependent Coverage Mandate on Time Use by Greg Colman, Dhaval Dave :: SSRN


Health Care Reform or More Affordable Health Care?

January 10, 2018

This article investigates the impact on the U.S. economy of making health care more affordable. We compare health care cost reductions with the Patient Protection and Affordable Care Act (ACA) using a rich life cycle general equilibrium model with heterogeneous agents. We evaluate a wide range of cost reductions ranging from 0.64% (realistic and feasible) to 29.5% (equivalence with OECD). Our results show that the ACA is more effective in reducing uninsured population than all cost reductions considered. This result holds throughout the life cycle and for the most fragile part of the population: the poorest, the less educated, and those with bad health. Realistic and feasible cost reductions are less welfare improving than the ACA. The increase of welfare induced by the reform is around 7.8 times higher than the increase provided by cost reductions. Besides, the poorer are more benefited than the richer after the reform, while the opposite occurs after cost reductions. Finally, to obtain the same welfare increase of the ACA, medical costs have to decrease by 5.21%, a very hard task. These results provide support for the ACA against opponents who might present cost reductions as alternatives.

via Health Care Reform or More Affordable Health Care? by Diego B. P. Gomes, Pedro Ferreira :: SSRN


The Affordable Care Act and Ambulance Response Times

January 10, 2018

This study contributes to the literature on supply-side adjustments to insurance expansions by examining the effect of the Affordable Care Act (ACA) on ambulance response times. Exploiting temporal and geographic variation in the implementation of the ACA as well as pre-treatment differences in uninsured rates, we estimate that the expansions of private and Medicaid coverage under the ACA combined to slow ambulance response times by an average of 19%. We conclude that, through extending coverage to individuals who, in its absence, would not have availed themselves of emergency medical services, the ACA added strain to emergency response systems.

via The Affordable Care Act and Ambulance Response Times


Is Obamacare Harming Quality? (Part 1)

January 5, 2018

An additional 24 million people had individually purchased guaranteed-renewable coverage (HIPAA required all non-short-term individual market plans to be guaranteed renewable). Such plans protected enrollees from premium spikes if they developed expensive conditions, were more secure than employer plans for patients with expensive conditions, and faced incentives to make plans attractive to the sick as well as not to renege on their commitments to the sick. Hundreds of millions of Americans once had the freedom to enroll in guaranteed-renewable plans but lost that choice when Obamacare outlawed them. A study by McKinsey and Company for the Department of Health and Human Services shows provider networks in individual-market plans have narrowed significantly since 2013, when the breadth of networks reflected actual consumer preferences.

via Is Obamacare Harming Quality? (Part 1)


After Years of Erosion, Mid-Size and Some Small Employers Added Health Coverage in 2016

December 9, 2017

This EBRI Notes article examines the percentage of employers offering health insurance from 2008–2016 to better understand how health insurance offer rates may have been affected by the Patient Protection and Affordable Care Act of 2010 (ACA), the Great Recession of 2007–2009, and the subsequent economic recovery. The data come from the Medical Expenditure Panel Survey–Insurance Component (MEPS-IC).

Many employers were expected to drop workplace health insurance with the introduction of the ACA. Since 2008, the percentage of coverage-offering employers with 1,000 or more employees has been consistently near or above 99 percent—it reached 99.8 percent in 2016—but smaller firms have shown a steady, though not precipitous, decline in offer rates. For the smallest employers studied, those with fewer than 10 employees, the offer rate declined from 22.7 percent in 2015 to 21.7 percent in 2016.

But over the last year, perhaps with the strengthening economy and lower unemployment rates, there is evidence of what may be a rebound in employment-based coverage offer rates among firms with 10-999 employees. More specifically, from 2015-2016:

For employers with 10–24 employees, those offering health benefits increased from 48.9 percent to 49.4 percent.

For employers with 25–99 employees, those offering health benefits increased from 73.5 percent to 74.6 percent.

For employers with 100-999 employees, those offering health benefits increased from 95.1 percent to 96.3 percent. For these employers, this trend actually began a year earlier, when the offer rate increased from 92.5 percent in 2014 to 95.1 percent in 2015.

This paper discusses the context for the recent rebound and suggests factors that may influence future trends.

via After Years of Erosion, Mid-Size and Some Small Employers Added Health Coverage in 2016 by Paul Fronstin :: SSRN


Churning, Confusion And Disruption — The Dark Side Of Marketplace Coverage

December 8, 2017

Insurance churn “is a long-standing problem in the U.S. health care system,” said Benjamin Sommers, a physician and health economist at Harvard’s Chan School of Public Health.

“But there’s a concern that with the ACA you’ve added a whole new layer.” Insurance turnover is especially frequent among lower-income families and those with irregular work.

via Churning, Confusion And Disruption — The Dark Side Of Marketplace Coverage | Kaiser Health News


The Affordable Care Act and Ambulance Response Times

December 8, 2017

This study contributes to the literature on supply-side adjustments to insurance expansions by examining the effect of the Affordable Care Act (ACA) on ambulance response times. Exploiting temporal and geographic variation in the implementation of the ACA as well as pre-treatment differences in uninsured rates, we estimate that the expansions of private and Medicaid coverage under the ACA combined to slow ambulance response times by an average of 19%. We conclude that, through extending coverage to individuals who, in its absence, would not have availed themselves of emergency medical services, the ACA added strain to emergency response systems.

via The Affordable Care Act and Ambulance Response Times by Charles Courtemanche, Andrew Friedson, Andrew Koller, Daniel Rees :: SSRN