Government subsidies that cut health insurance premium prices in half for people without insurance would reduce the number of uninsured Americans by just 3 percent, according to a RAND Corporation recent study.
The study by the nonprofit research organization contradicts suggestions by some that large numbers of people without health insurance would sign up for coverage if the government provided subsidies or tax credits to reduce the cost of health insurance.
An estimated 45 million Americans do not have health insurance. Most of these people are in low and moderate-income families whose members do not receive insurance through the workplace but whose income is too high to qualify for Medicaid.
"Insurance policy prices aren't going to be the tool that solves the problem of the uninsured," said M. Susan Marquis, senior economist with RAND and one of the study's authors. "Price is not the only barrier people face in deciding whether to purchase insurance."
Survey participants cited other factors that influenced whether they purchased individual health insurance policies, including personal attitudes toward risk; whether they believe they can get good health care without insurance; perceived difficulty in selecting a health care plan; and even a concern that insurance companies require too much personal information for individual plans compared with group insurance plans.
The study found that among the people who decide to buy non-group health insurance, price is an important factor in their decision to choose one policy over another.
Researchers found that people who buy health insurance prefer policies with more benefits and lower deductibles, even if they have to pay higher premiums. Those in poor health are particularly willing to pay a higher price for a low deductible and are more likely to prefer insurance plans that feature mental health and prescription drug benefits. Researchers concluded that newer types of individual plans with very high deductibles may be attractive to healthy people but are unlikely to help reduce the total number of people who lack health insurance.
