Firms' Demand for Employment-Based Mental Health Benefits

Judith Shinogle and David Salkever ()

No 11436, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: Employment-based health insurance is the main source of health coverage for the non-elderly. Few previous studies have examined the factors that impact employer decision-making in selecting the coverage to offer to their employees and none have examined generosity of mental health coverage. This paper uses cross-sectional data from a survey of medium to large firms, including information on employee characteristics, to examine the empirical determinants of mental health coverage choices. We find that the firm's demand for mental health coverage is strongly influenced by employee characteristics. We also find that certain state and local policy interventions directed at enhancing access to mental health care have impacts on coverage decisions. Specifically, public provision of mental health lowers mental health coverage generosity and parity legislation increases mental health generosity. Future research with panel data is warranted to examine the causal effects of these policies.

JEL-codes: I1 (search for similar items in EconPapers)
Date: 2005-06
New Economics Papers: this item is included in nep-hea
Note: EH
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Citations: View citations in EconPapers (1)

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