Distributional Effects of Public Health Insurance Reform

Hubert Janicki

No 423, 2011 Meeting Papers from Society for Economic Dynamics

Abstract: This paper quantifies the effects of key parts of the 2010 health care reform legislation. I construct a lifecycle incomplete markets model with an endogenous choice of health insurance coverage and calibrate it to U.S. data. I find that the reform decreases the fraction of uninsured households by 94% and increases ex-ante household welfare by 2.3% in consumption equivalence. The main driving force behind the reduction in the uninsured population is the health insurance mandate, although I find no significant welfare loss associated with the elimination of the mandatory health insurance provision.

Date: 2011
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