The primary goal will be to analyze the impact of proposed employer requirements on business as a percent of overall business costs, how the expenses might be absorbed by firms and the impacts on employment and the economy, including consumer affordability in terms of out-of-pocket costs, individual premiums, and employee-paid premiums. In addition, we will explore employee response to firm behavior related to insurance offerings and premium increases.

The project will provide analysis of how PPACA will impact healthcare consumers in both the individual and employer-based insurance market. In addition to our existing expertise in calculating the change in consumer out-of-pocket expenditures for premiums and other direct health care costs, this effort will allow us to model employer responses to alternative reform proposals, as well as employee responses within firms to changes in out-of-pocket premium expenditures resulting from different reforms. The model being developed allows us to examine many hypotheses.