January 19, 2018
Amy Finkelstein (MIT) Nathaniel Hendren (Harvard University) and Mark Shepard (Harvard Kennedy School)
How much are low-income individuals willing to pay for health insurance? What are the implications for insurance market reforms that change government subsidies? Using administrative data from Massachusetts’ subsidized insurance
exchange in 2009-2013, the authors exploit discontinuities in the premium subsidy schedule to estimate willingness to pay and costs of insurance among low-income
adults.
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Research Excerpt
Our finding suggests that without large subsidies or high mandate penalties, few low-income individuals will choose to purchase insurance.
Study Authors
Study Authors