Effect of State Health Insurance Mandates on Employer-provided Health Insurance

David van der Goes (), Justin Wang () and Katharine C Wolchik ()
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Justin Wang: Department of Management, Worcester Polytechnic Institute, 100 Institute Road, Worcester, 01609-2280 USA.
Katharine C Wolchik: Department of Economics, Lehigh University, 621 Taylor Street, Bethlehem, PA 18015.

Eastern Economic Journal, 2011, vol. 37, issue 4, 437-449

Abstract: We determine the impact of the change in the number of state health insurance mandates from 2004 to 2006 on the probability that an individual has employer-provided health insurance (EPHI). We hypothesize that increasing the number of mandates will decrease the probability that an individual has EPHI. Using the within-state variation of the number of mandates, we show that each additional mandate causes approximately a 0.2 percentage point decrease in the probability that an individual has EPHI. Importantly, using a two-stage least squares model, we are able to clearly demonstrate that these results are not biased by endogeneity.

Date: 2011
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