Full Citation

Title: The Effect of Mandated Health Insurance on the Price of Care: Evidence from the Massachusetts Health Reform

Citation Type: Miscellaneous

Publication Year: 2012

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Abstract: In 2006, Massachusetts passed a health care reform which required individuals to purchase health insurance and provided subsidized health insurance to the poor. The reform greatly increased the proportion of the state population that was insured. In this study we use a large data set of private health insurance claims to analyze the effect of the increase in the number of insured on the price of care. Findings of note are that prices for well-infant visits rose by approximately 7 percent, whereas prices for well-adult visits rose by approximately 3 percent. The price of appendectomies, for which price elasticity of demand is inelastic, remained unchanged. Triple difference estimates using appendectomies as an additional control group show a 6 percent rise in well-infant visit prices and no effect on well-adult visit prices. Our estimates imply a large increase in the cost of health services with relatively elastic demand (such as well-adult visits) following a large scale insurance mandate such as the Affordable Care Act.

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Authors: Friedson, Andrew; Marier, Allison

Publisher: Syracuse University

Data Collections: IPUMS USA

Topics: Health, Other

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