Projecting the ACA’s Impact on Firm Self-Insurance and the Small Group Market

Grant: #72672

Grantee Institution: University of Southern California

Principal Investigator: Erin E. Trish, Ph.D.

Grant Period: May 15, 2015 – December 31, 2015

Budget: $98,369

This project is funded as part of the Robert Wood Johnson Foundation’s solicitation “Policy-Relevant Insurance Studies” (PRIS), which supports studies that address the macro and micro effects of policies related to health insurance. The purpose of this project is to inform federal and state policy discussions of the impacts of small group market community rating requirements and potential interventions to improve the functioning of the market and preserve affordable insurance options for small businesses and workers. Using KFF/HRET survey data, the researchers will (1) simulate the impact of community rating on firm self-insurance decisions; (2) simulate the impact of self-insurance decisions on small group market premiums; and (3) evaluate differences in these effects across states using data on the distribution of firm size and industry.

Publications

Does Limiting Allowable Rating Variation in the Small Grouphealth Insurance Market Affect Employer Self-Insurance?
Journal of Risk and Insurance | October 2016