How does retiree health insurance influence public sector employee saving?

Abstract

Economic theory predicts that employer-provided retiree health insurance (RHI) benefits have a crowd-out effect on household wealth accumulation, not dissimilar to the effects reported elsewhere for employer pensions, Social Security, and Medicare. Nevertheless, we are unaware of any similar research on the impacts of retiree health insurance per se. Accordingly, the present paper utilizes a unique data file on respondents to the Health and Retirement Study, to explore how employer-provided retiree health insurance may influence net household wealth among public sector employees, where retiree healthcare benefits are still quite prevalent. Key findings include the following: Most full-time public sector employees anticipate having employer-provided health insurance coverage in retirement, unlike most private sector workers;Public sector employees covered by RHI had substantially less wealth than similar private sector employees without RHI. In our data, Federal workers had about $82,000 (18%) less net wealth than private sector employees lacking RHI; state/local workers with RHI accumulated about $69,000 (or 15%) less net wealth than their uninsured private sector counterparts.After controlling on socioeconomic status and differences in pension coverage, net household wealth for Federal employees was $116,000 less than workers without RHI and the result is statistically significant; the state/local difference was not.

Biosimilars: How Can Payers Get Long-Term Savings?

“…Evidence from chemical generics shows that price regulation for entry generally appears to be associated with reduced incentives and limited diffusion after entry [ 35 , 36 ]. On the other hand, effective demand-side incentives—including physician budgets linked to incentives, generic substitution (possibly linked to incentives) and generic prescribing incentives—encourage generic usage [ 37 , 38 ].…”

“…We note the use of RP in Germany, but we conclude above that the particular features of the calculation mechanism, interaction with co-payments, confidential discounts and incentives for physicians negate its adverse effects on biosimilar entry. The experience with generics elsewhere highlights how strict price regulation can hinder competition [ 35 , 36 ].…”

The influence of gender and product design on farmers’ preferences for weather-indexed crop insurance

“…Bundled insurance-savings products provide a positive payment in both good and bad states of the world, making insurance clients feel that they are receiving some return on their insurance investment, even without calamity ( Akter, 2012 ). Additionally, savings are commonly used as a form of insurance to cover against idiosyncratic shocks (such as health risks) both in developed and developing countries ( Clark and Mitchell, 2014 ). Given that women are more vulnerable to health and environmental shocks ( Clark and Mitchell, 2014 ), bundling WII with savings may be more suitable to women’s needs as it provides coverage against both idiosyncratic and covariate shocks ( Delavallade et al, 2015 ).…”

“…Additionally, savings are commonly used as a form of insurance to cover against idiosyncratic shocks (such as health risks) both in developed and developing countries ( Clark and Mitchell, 2014 ). Given that women are more vulnerable to health and environmental shocks ( Clark and Mitchell, 2014 ), bundling WII with savings may be more suitable to women’s needs as it provides coverage against both idiosyncratic and covariate shocks ( Delavallade et al, 2015 ). However, bundling may also potentially make the product more complicated, which could discourage women clients’ participation if they have less financial literacy than men.…”

Social Protection System Development In Kazakhstan In The Context Of European Trends

“…Econometric studies of the effect of health insurance on household welfare in the public and private sectors in the United States has led to the conclusion that in the public sector (if you have medical insurance guarantees) the general level of material security (current income, savings, property) is lower than in the private sector, where the health insurance by the employer has a limited distribution. This conclusion is considered as an argument against the introduction of universal health insurance system (Clark & Mitchell, 2014), which in our opinion is incorrect. In developing economies, in contrast to developed countries, there is no increase in the propensity to save and to ensure the material well-being of families, the presence of insurance protection of social risks.…”