The Health and Wealth of a Nation: Employer-Based Health insurance and the Affordable Care Act

Appendix C: Defining Empirical Constructs

171 Appendix C Defining Empirical Constructs This appendix provides a detailed description of the empirical constructs used as dependent variables in the multivariate analysis in Chapters 3, 4, and 5. 172 C.1 Description of the Empirical Constructs Used as Dependent Variables in the Multivariate Analysis Offer ESI A 0,1 binary variable, with “1” indicating that the firm offers health benefits to its workers. Access More than 30 hours required A 0,1 binary variable, with “1” indicating that the firm requires an employee to work more than 30 hours a week before receiving an offer of health insurance. No wait time A 0,1 binary variable, with “1” indicating that a worker is eligible for health insurance as soon as employment begins (or at the beginning of the first month following employment). More than 3 months’ wait A 0,1 binary variable, with “1” indicating that a worker must wait more than three months before receiving an offer of health insurance. Quality 90%+ firm-paid premium A 0,1 binary variable, with “1” indicating that the firm pays at least 90 percent of the health insurance premium. At least 2 plans offered A 0,1 binary variable, with “1” indicating that the firm offers at least two health plans. At least 2 types offered A 0,1 binary variable, with “1” indicating that the firm offers at least two different types of health plans (conventional, HMO, PPO, POS, and other). Strategies for rising health care costs Wages and access The number of the following actions the firm took in response to rising health care costs: gave fewer raises or reduced wages, reduced workforce, increased workers not eligible for ESI, increased months to receive ESI, or increased hours to receive ESI. ESI choice The number of the following actions the firm took in response to rising health care costs: increased amount worker pays for family coverage, increased amount worker pays for single coverage, increased copayment or coinsurance, decreased variety of health plans offered, decreased number of health plans offered, or changed health insurance carriers. 173 Benefits The number of the following actions the firm took in response to rising health care costs: dental insurance, vision insurance, non-health benefits, health insurance, or other healthrelated insurance. Motivations for not offering ESI Costs too high The number of the following reasons that a firm found to be important for not offering ESI: premiums too high, business cannot afford it, or revenue too uncertain to commit to a plan. Worker characteristics The number of the following reasons that a firm found to be important for not offering ESI: can recruit and retain good workers without it, workers temporary or part-time, or worker turnover too high. Administrative costs and worker preferences The number of the following reasons that a firm found to be important for not offering ESI: firm is too small or new, workers cannot afford it, workers prefer wages or other benefits, or setup too complicated and time-consuming. Healthy workers A 0,1 binary variable, with 1 indicating that the firm said that workers were healthy and did not need ESI as an important reason for not offering it. Workforce skills Low-skilled A 0,1 binary variable, with “1” indicating that the firm had a majority of positions filled by low-skilled workers (those with no more than a high-school education and one year of work experience when starting the position). High-skilled A 0,1 binary variable, with “1” indicating that the firm had a majority of positions filled by high-skilled workers (those with at least a bachelor’s degree or five years of work experience when starting the position). 174 Firm sizea 5–19 workers A 0,1 binary variable, with “1” indicating that the firm had between 5 and 19 workers at all locations. 20–50 workers A 0,1 binary variable, with “1” indicating that the firm had between 20 and 50 workers at all locations. 51+ workers A 0,1 binary variable, with “1” indicating that the firm had at least 51 workers at all locations . Firm characteristics (control factors)—Industryb Service A 0,1 binary variable, with “1” indicating a firm in the service sector (1987 SIC of 70–72, 74–79, 81, 83–86, 88–89). Retail trade A 0,1 binary variable, with “1” indicating a firm in the retail sector (1987 SIC of 52–60...