The effect of tax-exempt out-of-pocket premiums on health plan choice
Publication
, Journal Article
Dowd, B; Feldman, R; Maciejewski, M; Pauly, MV
Published in: National Tax Journal
January 1, 2001
Market-based health care reform proposals typically rely on 1) consumer choice among competing health plans, 2) premiums paid out-of-pocket for higher priced plans, and 3) a significant out-of-pocket premium-price elasticity of health plan choice. Section 125 of the Internal Revenue Code exempts employee out-of-pocket premiums from personal income taxes and FICA taxes. The predicted effect is attenuation of the out-of-pocket premium-price elasticity of health plan choice. Using 1994 data from a national sample of large public employers, we find that employees are sensitive to out-of-pocket premiums, but tax-exempt out-of-pocket premiums reduce substantially the price elasticity of health plan choice.
Duke Scholars
Published In
National Tax Journal
DOI
ISSN
0028-0283
Publication Date
January 1, 2001
Volume
54
Issue
4
Start / End Page
741 / 753
Related Subject Headings
- Economics
- 3801 Applied economics
- 1801 Law
- 1501 Accounting, Auditing and Accountability
Citation
APA
Chicago
ICMJE
MLA
NLM
Dowd, B., Feldman, R., Maciejewski, M., & Pauly, M. V. (2001). The effect of tax-exempt out-of-pocket premiums on health plan choice. National Tax Journal, 54(4), 741–753. https://doi.org/10.17310/ntj.2001.4.03
Dowd, B., R. Feldman, M. Maciejewski, and M. V. Pauly. “The effect of tax-exempt out-of-pocket premiums on health plan choice.” National Tax Journal 54, no. 4 (January 1, 2001): 741–53. https://doi.org/10.17310/ntj.2001.4.03.
Dowd B, Feldman R, Maciejewski M, Pauly MV. The effect of tax-exempt out-of-pocket premiums on health plan choice. National Tax Journal. 2001 Jan 1;54(4):741–53.
Dowd, B., et al. “The effect of tax-exempt out-of-pocket premiums on health plan choice.” National Tax Journal, vol. 54, no. 4, Jan. 2001, pp. 741–53. Scopus, doi:10.17310/ntj.2001.4.03.
Dowd B, Feldman R, Maciejewski M, Pauly MV. The effect of tax-exempt out-of-pocket premiums on health plan choice. National Tax Journal. 2001 Jan 1;54(4):741–753.
Published In
National Tax Journal
DOI
ISSN
0028-0283
Publication Date
January 1, 2001
Volume
54
Issue
4
Start / End Page
741 / 753
Related Subject Headings
- Economics
- 3801 Applied economics
- 1801 Law
- 1501 Accounting, Auditing and Accountability