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Association: Name: Economics of Population Health: Inaugural Conference of the American Society of Health Economists URL: http://healtheconomics.us
Citation: URL: http://www.allacademic.com/meta/p91207_index.html Direct Link: HTML Code:

Condliffe, Simon. and Link, Charles. "Health Status and the Demand for Private Health Insurance in the U.S." Paper presented at the annual meeting of the Economics of Population Health: Inaugural Conference of the American Society of Health Economists, TBA, Madison, WI, USA, Jun 04, 2006 <Not Available>. 2009-05-25 <http://www.allacademic.com/meta/p91207_index.html>

Condliffe, S. and Link, C. R. , 2006-06-04 "Health Status and the Demand for Private Health Insurance in the U.S." Paper presented at the annual meeting of the Economics of Population Health: Inaugural Conference of the American Society of Health Economists, TBA, Madison, WI, USA <Not Available>. 2009-05-25 from http://www.allacademic.com/meta/p91207_index.html

Publication Type: Abstract Abstract: Rationale: Persons in poorer health are expected to be more likely to purchase private health insurance than those in better health. Anticipating greater health expenditures, those in poorer health are expected to seek coverage to defray these costs. However, several studies have found the relationship between self-assessed health status (SAHS) and private health insurance to be positive (Doiron et al (2005), Australian data; and Shmueli (2001), Israeli data). Two factors may contribute to this result. First, SAHS may be an imperfect measure of health. The advantages of SAHS are that it is more easily obtained than more costly objective health measures. Some research suggests that SAHS is an accurate measure of health (Case et al, 2002, Idler and Kasl, 1995). Several studies question the accuracy of SAHS (Daltroy et al (1999), Lindeboom and van Doorslaer (2004), and Crossley and Kennedy (2002)). One possible cause is the positive relationship between SAHS and the demand for private health insurance may result from individual heterogeneity not explained by independent variables. Risk tolerance, past experience with the health system, and attitudes towards the health care system and medical profession may impact the private insurance purchase decision. A second possible cause is that insurers may only offer insurance to healthier persons. Thus, access to private insurance is denied to those in poorer health irrespective of their demand. Objectives: The research will establish whether the positive relationship between SAHS and the demand for private insurance exists in the U.S. The Medical Expenditures Panel Survey (MEPS) provides extensive data on health status, health conditions, and socioeconomic factors for U.S. respondents. The only prior study using U.S. data considered a small segment of the U.S. health insurance market: the purchase of Medigap insurance by the elderly (Ettner, 1997). Further, the research will seek to control for individual personality traits such as attitudes towards the health system and the medical profession, which will address the purchase/not purchase private insurance decision. To our knowledge, no study has explored these attitudinal elements. Attitudes towards the health system may help explain decisions to remain uninsured. Methodology: Using MEPS, a panel data set is constructed that includes family income, education, employment status, health conditions, and other socioeconomic factors. Results: A strong positive relationship exists between SAHS and private health coverage in the U.S. This result holds even when controlling for health conditions and other socioeconomic factors. Attitudinal factors such as risk tolerance, rating of health care received, use of routine appointments, and perception of health insurance, are significant factors in the private health insurance purchase decision. However, the positive relationship between SAHS and the demand for private health insurance remains when controlling for attitudinal factors. Conclusions: The demand for private health insurance is positively related to SAHS. This holds while controlling for socioeconomic factors, health conditions, and attitudes towards health, insurance, and the health system.

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