Reports from University of California Irvine Add New Data to Findings in Management Science (How Does Health Insurance Affect Firm Employment and Performance? Evidence From Obamacare): Business – Management Science

2025 DEC 30 (NewsRx) -- By a News Reporter-Staff News Editor at Health Policy and Law Daily -- Researchers detail new data in Business - Management Science. According to news originating from Irvine, California, by NewsRx correspondents, research stated, “This article discusses how mandating employers to provide health insurance of a minimum quality and the associated increases in health insurance premia affect firm employment and performance. Using firm-level employee health insurance data around the passage of the Patient Protection and Affordable Care Act (PPACA), we show that the PPACA is associated with a significant increase in health insurance premia for employees in company-sponsored health insurance plans.”

Our news journalists obtained a quote from the research from the University of California Irvine, “In response, employers with greater exposure to the PPACA reduce employee enrollments in their health insurance plans to a larger extent after the law’s enactment. Our analysis suggests that employers achieve this reduction in enrollment by shifting employment composition from full-time employees to parttime, temporary, or seasonal workers, who are not covered in employer-sponsored health insurance plans. Furthermore, we find no evidence of deterioration in performance at companies more exposed to the increase in health insurance premia.”

According to the news editors, the research concluded: “Overall, our findings illustrate how firms adapt to and mitigate cost increases associated with regulatory changes through strategic labor practices.”

This research has been peer-reviewed.

For more information on this research see: How Does Health Insurance Affect Firm Employment and Performance? Evidence From Obamacare. Management Science, 2025. Management Science can be contacted at: Informs, 5521 Research Park Dr, Suite 200, Catonsville, MD 21228, USA.

The news correspondents report that additional information may be obtained from Yuhai Xuan, University of California Irvine, Irvine, CA 92697, United States. Additional authors for this research include Heitor Almeida, Ruidi Huang and Ping Liu.

The direct object identifier (DOI) for that additional information is: https://doi.org/10.1287/mnsc.2023.03761. 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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