Tax Credits, the Distribution of Subsidized Health Insurance Premiums, and the Uninsured

Mark V. Pauly, Bradley Herring and David Song

No 8457, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: This paper investigates the impact of a $1000 refundable tax credit for self-only coverage on net premiums and insurance purchases for a representative sample of potential buyers in the individual insurance market. Two methods are used to estimate the distribution of premiums: predicted premiums based on a sample of actual purchasers, and premium quotations drawn from an e-insurance web site. In most of the simulations, the net premiums for half or more of the prospective buyers are reduced to zero or low levels. The number of uninsured is reduced by between 21 percent and 85 percent depending on the size of the deductible in the benchmark plan. However, the results are sensitive to assumptions about insurer underwriting practices.

JEL-codes: I11 I18 (search for similar items in EconPapers)
Date: 2001-09
New Economics Papers: this item is included in nep-hea and nep-ias
Note: EH
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Citations: View citations in EconPapers (2)

Published as Pauly, Mark V., Bradley Herring and David Song. "Tax Credits, The Distribution Of Subsidized Health Insurance Premiums, And The Uninsured," Forum for Health Economics and Policy, 2002, v5, Article 5.
Published as Tax Credits, the Distribution of Subsidized Health Insurance Premiums, and the Uninsured , Mark V. Pauly, Bradley Herring, David Song. in Frontiers in Health Policy Research, Volume 5 , Garber. 2002

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Chapter: Tax Credits, the Distribution of Subsidized Health Insurance Premiums, and the Uninsured (2002)
Journal Article: Tax Credits, the Distribution of Subsidized Health Insurance Premiums, and the Uninsured (2002)
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