HCFO Announces New Grants

Title: How Do Rising Healthcare Costs Affect Worker Compensation?
Grantee Institution: Johns Hopkins University
Principal Investigator: Bradley Herring, Ph.D.
Grant Period: 11/1/07–10/31/08
Paragraph Summary: The researchers will measure the extent to which increases in health insurance premiums are borne by workers in the form of lower wages relative to the extent to which they are borne by employers in the form of lower profits.  They will also examine whether there are significant differences in this relationship between small and large firms and between low and high income workers.  Finally, they will examine the extent to which any wage offsets vary by the expected health care costs across groups of workers with different characteristics, such as age, gender, health status, and family size. The objective of the study is to better understand where the burden of rising health care costs falls, so as to develop appropriate policy incentives.

Title: Economic Impact of Adverse Health Events on the Uninsured Near Elderly
Grantee Institution: Northwestern University, Kellogg School of Management
Principal Investigator: David Dranove, Ph.D.
Grant Period: 11/1/07 – 10/31/08
Paragraph Summary: The researchers will assess how insurance status affects personal wealth and earnings in the population nearing age 65 that have a heightened probability of adverse health but have not yet qualified for Medicare.  Specifically, they will analyze: 1) the extent to which measurable dimensions of household wealth (e.g., total net worth, home equity, funds in retirement plans) fall after an adverse health event; 2) the extent to which individuals in the United States who lack health insurance suffer disproportionate losses in household wealth; 3) whether the probability of sentinel financial events, including loss of home and loss of estate, increases after an adverse health event; and 4) the extent to which the probability of a sentinel financial event is higher for individuals who lack health insurance.  The objective of this study is to better understand the indirect effects of lack of insurance on individuals’ overall financial well-being.

Title: Health Savings Accounts, High Deductible Policies, and the Uninsured: Simulating the Effects of HSA Tax Policy
Grantee Institution: Brigham Young University
Principal Investigator: James Cardon, Ph.D.
Grant Period: 11/1/07 – 12/31/08
Paragraph Summary: The researchers will explore how Health Savings Accounts (HSA) and various tax-based health insurance proposals impact the uninsured population. They also will simulate how tax deduction and credit policies for non-group insurance affect the employment-based group market. Through an innovative approach, the model will consider employer choice and individual preferences in the face of the risk of uncertain medical expenditures. The behavior of three important consumer groups will be examined: (1) the currently uninsured who do not have access to group coverage; (2) the currently uninsured who have access to group coverage but choose to be uninsured; and (3) the currently insured group in group coverage. The researchers will model a variety of policy changes and assess the value to each consumer group and the likelihood of changing from the status quo. The objective of this project is to inform policymakers about the impact of HSAs and various tax-based health insurance proposals on the uninsured and group market.

Title: The Provision and Reporting of Community Benefits by Hospitals: Lessons from Maryland
Grantee Institution: Urban Institute
Principal Investigator: Bradford Gray, Ph.D.
Grant Period: 11/1/07 – 10/31/08
Paragraph Summary: The researchers will examine factors at the hospital and community level that underlie variations in the amount of hospitals’ charity care and other community benefit activities. Through a series of interviews and quantitative analysis the researchers will provide a critical account of the practical realities, advantages, and disadvantages of Maryland’s experience providing and reporting on not-for-profit hospitals’ charitable activities. The Maryland approach is a working public model of the acclaimed Catholic Heath Association’s (CHA) guidelines that measure and document the charity care it provides to communities. The researchers will develop benchmarks for the amount and variation of charity care and other community benefit activities. The objective of the study is to provide policymakers evidence-based information as they make decisions about requirements for hospitals’ provision of charity care, as well as the accountability of nonprofit hospitals.

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