Working Paper: NBER ID: w11446
Authors: Thomas C. Buchmueller; Su Liu
Abstract: We use data from several national employer surveys conducted between the late 1980s and the mid-1990s to investigate the effect of state-level underwriting reforms on HMO penetration in the small-group health insurance market. We identify reform effects by exploiting cross-state variation in the timing and content of reform legislation and by using mid-sized and large employers, which were not affected by the legislation, as within-state control groups. While it is difficult to disentangle the effect of state reforms from other factors affecting HMO penetration in the small group markets, the results suggest a positive relationship between insurance market regulations and HMO penetration.
Keywords: No keywords provided
JEL Codes: I10; I18
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| State-level underwriting reforms (G52) | HMO penetration in the small group health insurance market (I13) |
| Introduction of underwriting and marketing regulations (G18) | Higher percentage of small firms offering HMO coverage (I13) |
| State-level health insurance reforms (I13) | Market structure alteration by enhancing HMO penetration (D49) |
| State-level health insurance reforms (I13) | HMO offer rates in larger firms (I13) |