Title

Small firms, bigger changes: health insurance coverage take-up rates in small firms after the ACA

Document Type

Article

Publication Date

1-1-2019

Publication Title

Applied Economics

Volume

51

First Page

5878

Last Page

5889

Keywords

Affordable Care Act of 2010, employer-sponsored health insurance coverage, Health economics

Abstract

© 2019, © 2019 Informa UK Limited, trading as Taylor & Francis Group. Measuring the impact of the Affordable Care Act of 2010 (ACA) on employer-sponsored health insurance is essential in an era of constant changes to health policy. Using data from the Kaiser Family Foundation Employer Survey, we focus on firms with fewer than 50 employees in order to isolate the effect of the ACA on small firms. We utilize a differences‐in‐differences approach with a time fixed effect structure to provide analysis for a treatment group of small firms and a control group of large firms. After excluding firms with grandfathered plans, we find that the ACA provisions reduced health insurance coverage take-up rates in small firms by 1.96 to 2.67 percentage points (compared to large firms).

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