The intracorrelation of family health insurance and job lock

Abstract

This paper tests for the presence of job lock and “health insurance plan lock” stemming from the health shock of a child family member. Using the onset of an acute, unanticipated health shock, I estimate a 7–14 percent decreased likelihood of all family members leaving their current health insurance network and health plan within one year of the emergency. This corresponds to a reduced one-year job mobility rate of approximately 13 percent for the health plan’s primary policyholder. Furthermore, the non-portability of health insurance products may contribute to the observed job and health plan lock.