NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

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

Mark V. Pauly, Bradley Herring, David Song

NBER Working Paper No. 8457
Issued in September 2001
NBER Program(s):   HC

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.

download in pdf format
   (142 K)

email paper

The NBER Bulletin on Aging and Health provides summaries of publications like this.  You can sign up to receive the NBER Bulletin on Aging and Health by email.

This paper is available as PDF (142 K) or via email.

Machine-readable bibliographic record - MARC, RIS, BibTeX

Document Object Identifier (DOI): 10.3386/w8457

Published:

Users who downloaded this paper also downloaded these:
Pauly, Herring, and Song w9299 Health Insurance on the Internet and the Economics of Search
Bundorf, Herring, and Pauly w11677 Health Risk, Income, and Employment-Based Health Insurance
Herring and Pauly w9888 Incentive-Compatible Guaranteed Renewable Health Insurance
 
Publications
Activities
Meetings
NBER Videos
Data
People
About

Support
National Bureau of Economic Research, 1050 Massachusetts Ave., Cambridge, MA 02138; 617-868-3900; email: info@nber.org

Contact Us