New Findings on Public Economics from CEPR Summarized (Incumbent Regulation and Adverse Selection: You Can Keep Your Health Plan, but At What Cost?): Economics – Public Economics

2022 FEB 01 (NewsRx) -- By a News Reporter-Staff News Editor at Health Policy and Law Daily -- Investigators discuss new findings in Economics - Public Economics. According to news reporting originating from London, United Kingdom, by NewsRx correspondents, research stated, “The 2010 Affordable Care Act (ACA) instituted incumbent regulation policies in the small group market, where existing health plans could choose to defer compliance with ACA regulations. This created incentives for employers with lower expected healthcare costs and greater uncertainty to not immediately become ACA compliant.”

Financial support for this research came from Agency for Healthcare Research & Quality.

Our news editors obtained a quote from the research from CEPR, “We use unique national data with over 300,000 employer-years from 2013 to 2017. Consistent with these incentives, we find that employers with healthier enrollees and those with more turnover were more likely to not immediately comply.”

According to the news editors, the research concluded: “This created adverse selection in the ACA-compliant market, increasing its annual healthcare costs by $365 per individual in 2014.”

This research has been peer-reviewed.

For more information on this research see: Incumbent Regulation and Adverse Selection: You Can Keep Your Health Plan, but At What Cost? Journal of Public Economics, 2022;205. Journal of Public Economics can be contacted at: Elsevier Science Sa, PO Box 564, 1001 Lausanne, Switzerland. (Elsevier - www.elsevier.com; Journal of Public Economics - http://www.journals.elsevier.com/journal-of-public-economics/)

The news editors report that additional information may be obtained by contacting Gautam Gowrisankaran, CEPR, London, United Kingdom. Additional authors for this research include Sebastian Fleitas and Anthony Lo Sasso.

The direct object identifier (DOI) for that additional information is: https://doi.org/10.1016/j.jpubeco.2021.104556. This DOI is a link to an online electronic document that is either free or for purchase, and can be your direct source for a journal article and its citation.

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