In the early 2000s the state of Massachusetts implemented a health reform aimed at enrolling peopl Show more In the early 2000s the state of Massachusetts implemented a health reform aimed at enrolling people without health insurance into an insurance plan.
In the early 2000s the state of Massachusetts implemented a health reform aimed at enrolling peopl Show more In the early 2000s the state of Massachusetts implemented a health reform aimed at enrolling people without health insurance into an insurance plan.
The reform required people without health insurance (at least those who could afford it) to buy insurance and put in place penalties on those who nevertheless chose not to buy insurance. Here are some study findings of the effects of the Massachusetts reform: We implement an empirical test for selection into health insurance using changes in coverage induced by the introduction of mandated health insurance in Massachusetts. Our test examines changes in the cost of the newly insured relative to those who were insured prior to the reform. We find that counties with larger increases in insurance coverage over the reform period face the smallest increase in average hospital costs for the insured population Is this evidence consistent or inconsistent with adverse selection into insurance before the Massachusetts health reform? Explain why or why not. Show less
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