Health insurance coverage of the unemployed: COBRA and the potential effects of Kassebaum-Kennedy

Mark Berger, Dan Black, Frank Scott and Amitabh Chandra

Journal of Policy Analysis and Management, 1999, vol. 18, issue 3, 430-448

Abstract: We use the April 1993 Current Population Survey to examine the health insurance coverage decisions of the unemployed and to simulate the potential effects of the new Kassebaum-Kennedy legislation. After controlling for demographic characteristics, COBRA eligibility raises the probability of health insurance coverage by 0.095, while eligibility for spouse employer insurance increases the likelihood of coverage by 0.318, and eligibility for both increases the likelihood of coverage by 0.341. In our simulations, we find that had Kassebaum-Kennedy been in effect in April 1993, 9.0 percent of the unemployed would be eligible to take up coverage, and the coverage rate of the unemployed would have been increased by 0.85 percent to 1.5 percent from 41.6 percent. Our estimates of the effect of Kassebaum-Kennedy on health insurance coverage are much lower than those reported by the Government Accounting Office prior to the passage of the legislation. © 1999 by the Association for Public Policy Analysis and Management.

Date: 1999
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Persistent link: https://EconPapers.repec.org/RePEc:wly:jpamgt:v:18:y:1999:i:3:p:430-448

DOI: 10.1002/(SICI)1520-6688(199922)18:3<430::AID-PAM7>3.0.CO;2-B

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