TY  - JOUR
AU  - Goldman,Dana P.
AU  - Sood,Neeraj
AU  - Leibowitz,Arleen
TI  - The Reallocation of Compensation in Response to Health Insurance Premium Increases
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 9540
PY  - 2003
Y2  - March 2003
UR  - http://www.nber.org/papers/w9540
L1  - http://www.nber.org/papers/w9540.pdf
N1  - Author contact info:
Dana Goldman
Schaeffer Center for Health Policy and Economics
University of Southern California
 3335 S. Figueroa St, Unit A
 Los Angeles, CA 90089-7273
Tel: (213) 821-7948
Fax: (213) 740-3460
E-Mail: dana.goldman@usc.edu

Neeraj Sood
Department of Clinical Pharmacy
USC School of Pharmacy
1985 Zonal Avenue
Los Angeles, CA 90033
Tel: 310/393-0411
Fax: 310/260-8156
E-Mail: nsood@usc.edu

Arleen Leibowitz
School of Public Policy and Social Research
Department of Policy Studies
3250 Public Policy Building
Box 951656
Los Angeles, CA 90095-1656
Tel: 310/206-8653
Fax: 310/206-0337
E-Mail: arleen@ucla.edu
AB  - This paper examines how compensation packages change when health insurance premiums rise. We use data on employee choices within a single large firm with a flexible benefits plan; an increasingly common arrangement among medium and large firms. In these companies, employees explicitly choose how to allocate compensation between cash and various benefits such as retirement, medical insurance, life insurance, and dental benefits. We find that a $1 increase in the price of health insurance leads to 52-cent increase in expenditures on health insurance. Approximately 2/3 of this increase is financed through reduced wages and 1/3 through other benefits
ER  -