Much speculation exists about the economic determinants of the uninsured. Despite its good intentions, access to the "safety net" of free care for the uninsured may make paying for private health insurance less attractive for certain households and thus increase their likelihood of being uninsured. This paper tests this relationship empirically, concentrating on the variation in access to free care for the uninsured across the different markets in the 1996-1997 Community Tracking Study Household Survey. Models predicting whether or not individual workers obtain employment-based insurance are examined, and strong evidence that workers are less likely to obtain insurance in markets with greater access to free care is found. Furthermore, with the growing phenomenon of uninsured workers declining coverage offered by their employers, an econometric model of a bivariate probit with sample selection is specified to explore the effect of free care on both employers' offerings and employees' take-up decisions.
Learning Objectives: Analyze the effect of safety net on employers' willingness to offer health insurance
Keywords: Access to Care, Health Insurance
Presenting author's disclosure statement:
Organization/institution whose products or services will be discussed: None
I do not have any significant financial interest/arrangement or affiliation with any organization/institution whose products or services are being discussed in this session.