'Competition' among employers offering health insurance.

Abstract:

:Most employees contribute towards the cost of employer-sponsored insurance, despite tax laws that favor zero contributions. Contribution levels vary markedly across firms, and the average contribution (as a percentage of the premium) has increased over time. We offer a novel explanation for these facts: employers raise contribution levels to encourage their employees to obtain coverage from their spouses' employer. We develop a model to show how the employee contribution required by a given firm depends on characteristics of the firm and its work force, and find empirical support for many of the model's predictions.

journal_name

J Health Econ

authors

Dranove D,Spier KE,Baker L

doi

10.1016/s0167-6296(99)00007-7

subject

Has Abstract

pub_date

2000-01-01 00:00:00

pages

121-40

issue

1

eissn

0167-6296

issn

1879-1646

pii

S0167-6296(99)00007-7

journal_volume

19

pub_type

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