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Introduction To Health Care Delivery System01:18

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New Linked Employee-Employer Data Show Workforce Composition Is Associated With Health Insurance Offers Among Small

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Area of Science:

  • Health Economics
  • Labor Economics
  • Public Health Policy

Background:

  • Small firms offer health insurance less frequently than large firms.
  • Limited understanding of factors influencing insurance offers within small employer segments.

Purpose of the Study:

  • Examine determinants of health insurance offers among small employers.
  • Utilize a novel linked employer-employee dataset for detailed analysis.

Main Methods:

  • Employed the Medical Expenditure Panel Survey-Insurance Component with Administrative Records (MEPS-ICAR).
  • Matched MEPS-Insurance Component (MEPS-IC) data with IRS records and Decennial Census data.
  • Conducted multivariate analyses on firms with fewer than 50 employees.

Main Results:

  • Higher median workforce income positively correlates with increased probability of insurance offers.
  • Dependent coverage offers rise when a majority of workers are married or have families of three or more.
  • Workforce characteristics significantly shape small employer insurance benefit provision.

Conclusions:

  • Workforce demographics are key drivers of small employer health insurance offerings.
  • The MEPS-ICAR dataset is valuable for policy analysis and understanding wage-benefit trade-offs.
  • Further research can leverage this data to explore health insurance benefit dynamics.