The Great Recession and Workers’ Health Benefits

Kanghyock Koh

Journal of Health Economics, 2018, vol. 58, issue C, 18-28

Abstract: During a recession, cost-sharing of employer-sponsored health benefits could increase to reduce labor costs in the U.S. Using a variation in the severity of recession shocks across industries, I find evidence that the enrollment rate of high deductible health plans (HDHPs) among workers covered by employer-sponsored health benefits increased more among firms in industries that experienced severe recession shocks. As potential mechanisms, I study employer-side and worker-side mechanisms. I find that employers changed health benefit offerings to force or incentivize workers to enroll in HDHPs. But I find little evidence of an increase in workers’ demand for HDHPs due to a reduction in income. These results suggest that the HDHP enrollment rate increased during the Great Recession, as employers tried to save costs of offering health benefits.

Keywords: The Great Recession; Employer-sponsored health benefits; High deductible health plans (search for similar items in EconPapers)
JEL-codes: I13 I31 J23 J32 (search for similar items in EconPapers)
Date: 2018
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:jhecon:v:58:y:2018:i:c:p:18-28

DOI: 10.1016/j.jhealeco.2018.01.003

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