The union advantage: union membership, access to care, and the Affordable Care Act

Luke Petach and David K. Wyant ()
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David K. Wyant: Belmont University

International Journal of Health Economics and Management, 2023, vol. 23, issue 1, No 1, 26 pages

Abstract: Abstract We describe a “union advantage” in health insurance coverage and access to care. Using multiple statistical models and data from the Medical Expenditure Panel Survey for 1996–2019, we show that—compared to non-union workers—union workers are more likely to have health insurance coverage (98% vs. 86%), more likely to have a regular care provider (83% vs. 74%), visited office-based providers 31% more often (5.64 vs. 4.27 visits), spend $832 more on healthcare annually, and pay a lower share of their expenditures out-of-pocket (26% vs. 37%). When we control for demographic characteristics across variety of specifications, these differences almost always remain at a statistically significant level. Further, we show that the union advantage is greater for low-income workers. Next, we demonstrate that—although the Affordable Care Act (ACA) appears to have reduced the union advantage in health insurance coverage by increasing coverage rates among non-union workers—a substantial union advantage in access to care remains after the ACA’s main provisions become effective. Finally, we explore how the ACA interacted with the trade union goal of maintaining employer-based health insurance. We show that unionized workers are less likely to contribute to “enrollment shifting,” which occurs when individuals shift from existing employer-based insurance to a new government funded program. This suggests that union bargaining over fringe benefits may have positive externalities in the form of cost reductions to the public sector.

Keywords: Health insurance; Trade unions; Healthcare; Affordable Care Act; Collective bargaining; Enrollment shifting; Healthcare disparities (search for similar items in EconPapers)
JEL-codes: I13 I14 J51 (search for similar items in EconPapers)
Date: 2023
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DOI: 10.1007/s10754-022-09336-7

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