scholarly journals Health Insurance Choice with Flexible Spending Accounts

2011 ◽  
Vol 37 (2) ◽  
pp. 208-222 ◽  
Author(s):  
James H Cardon
Keyword(s):  
Health Insurance ◽  
Insurance Choice ◽  
Flexible Spending Accounts

scholarly journals The Role of Wealth and Health in Insurance Choice: Bivariate Probit Analysis in China

2014 ◽  
Vol 2014 ◽  
pp. 1-9 ◽  
Author(s):  
Yiding Yue ◽  
Jinyou Zou
Keyword(s):  
Health Care ◽  
Health Insurance ◽  
Health Status ◽  
Care Program ◽  
Pension Plans ◽  
Bivariate Probit ◽  
Commercial Insurance ◽  
Health Care Program ◽  
Pension Program ◽  
Insurance Choice

This paper captures the correlation between the choices of health insurance and pension insurance using the bivariate probit model and then studies the effect of wealth and health on insurance choice. Our empirical evidence shows that people who participate in a health care program are more likely to participate in a pension plan at the same time, while wealth and health have different effects on the choices of the health care program and the pension program. Generally, the higher an individual’s wealth level is, the more likelihood he will participate in a health care program; but wealth has no effect on the participation of pension. Health status has opposite effects on choices of health care programs and pension plans; the poorer an individual’s health is, the more likely he is to participate in health care programs, while the better health he enjoys, the more likely he is to participate in pension plans. When the investigation scope narrows down to commercial insurance, there is only a significant effect of health status on commercial health insurance. The commercial insurance choice and the insurance choice of the agricultural population are more complicated.

scholarly journals THE PROVISION OF PUBLIC UNIVERSAL HEALTH INSURANCE: IMPACTS ON PRIVATE INSURANCE, ASSET HOLDINGS, AND WELFARE

2012 ◽  
Vol 17 (6) ◽  
pp. 1252-1280 ◽  
Author(s):  
Minchung Hsu ◽  
Junsang Lee
Keyword(s):  
Health Insurance ◽  
Dynamic Equilibrium ◽  
Private Insurance ◽  
Universal Health Insurance ◽  
Public Provision ◽  
Market Incompleteness ◽  
Insurance Choice ◽  
The Rich ◽  
Universal Health ◽  
Asset Holdings

This paper aims to investigate impacts of public provision of universal health insurance (UHI) in an environment with household heterogeneity and financial market incompleteness. Various UHI polices with both distortionary and nondistortionary financing methods are compared to address the trade-off between risk reduction and tax distortion, as well as the corresponding welfare implications. We use a dynamic equilibrium model with endogenous insurance choice and labor supply decisions to perform quantitative analysis. The results suggest that the UHI expenditure coverage rate is too high in most OECD countries when the distortion effect is considered. We find a clear crowding-out effect on asset holdings. Implications for private health insurance (PHI) purchases when UHI is introduced depend on the pricing and the design of coverage. We find that the rich are sensitive to the price of PHI, and would prefer a supplemental plan when UHI is introduced.

scholarly journals The Determinants of Optional Insurance Coverage with FlexibleSpending Accounts in Post-Affordable Care Act-USA

2018 ◽  
Author(s):  
Ibrahim Niankara
Keyword(s):  
Health Insurance ◽  
Theoretical Model ◽  
Affordable Care Act ◽  
Insurance Coverage ◽  
Joint Probability ◽  
Insurance Premium ◽  
Medical Expenditure ◽  
Insurance Companies ◽  
Policy Makers ◽  
Flexible Spending Accounts

Motivated by the theoretical model of health insurance choice with Flexible Spending Accounts (FSAs) presented in Cardon 2012, this study investigates the determinants of optional coverage (SSP) and flexible spending accounts (FSA) enrollment, among the privately insured in post-affordable-care-act (ACA) USA. To this end, we rely on semi-parametric bi-variate probit methods, along with a pooled cross-section of the 2015-2016 National Health Interview Surveys. As predicted by the theoretical model, we find that SSP and FSA are complement health solutions with a positive correlation. Our results emphasize that the most important trigger factors influencing the joint probability of SSP and FSA adoption include not only insurance premium cost, but also age, education, marital status, number of work hours, region of residency, citizenship status, and annual health expenditure level. We find that controlling for these latter factors, health status is not significant especially for FSA adoption. In addition, despite the fact that the relative frequency of individuals with FSA rises with increasing levels of medical expenditure, ACA restrictions on FSA tax exclusion to an annual adjusted maximum of $2600 (in 2017 $s) seems to adversely burden individuals with greater medical expenditure, thereby reducing their likelihood of FSA enrollment in post-ACA USA. Understanding these factors is very crucial to US health care market's stakeholders, including insurance companies, firms looking to design their health insurance offerings, but also policy-makers interested in providing new tailored health solutions for reducing health risks.

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