PHP3 - Perceived Value of Health Insurance and Enrollment Decision Among Low-Income Population

Abstract

Individual mandate is one of the key features of the Affordable Care Act. This study assesses the uninsured rate in various subgroups and describes the differences between the uninsured and the insured focusing on individuals’ attitudes toward risk. The 2014 Medical Expenditure Panel Survey-Household Component (MEPS-HC) full year consolidated data file were analyzed. The study included people in poverty who were eligible neither for public coverage nor for employer-sponsored insurance. Factors predicting likelihood of being uninsured were examined using a logit model. The study included 2,258 individuals. Thirty four percent of the sample remained uninsured. The uninsured were likely to have lower demand for insurance and perceived value of insurance. Zero doctor visit was the strongest predictor of likelihood of being uninsured. It appears that adverse selection exists in individual insurance market. The outreach efforts should focus on increasing perceived value of health insurance.