_________________________________________________________________

  E M P L O Y E E   B E N E F I T S ,   C O M P E N S A T I O N
                    &   P E N S I O N   L A W
                 Vol. 4,  No. 16: August 28, 2003
_________________________________________________________________

Publisher:     LSN Employment, Labor, Compensation & Pension Journals
               a division of
               Social Science Electronic Publishing, Inc. (SSEP)
               and Social Science Research Network (SSRN)

Editor:        PAMELA PERUN
               Urban Institute
               Mailto:pamela@planetnow.com

Copyright:     SSEP, Inc. 2003. All rights reserved.

Leading Social Science Research Delivered To Your Desktop
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                      Topic of This Issue:
                         Health Issues
   ___________________________________________________________


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T A B L E   of   C O N T E N T S
_________________________________________________________________


NEW and FORTHCOMING ARTICLES

"A Comparison of the USA Health Care Effort with other OECD
 Countries"
      Hacienda Publica Espanola, Vol. 161, No. 2, 2002, Instituto
      de Estudios Fiscales, Copyright
     EDUARD GRACIA
        Deloitte - Strategy & Operations
     JOAN GIL TRASFí
        University of Barcelona
        Department of Economic Theory


"National Health Spending up 8.7 Percent Between 2000-2001;
 Spending for Health Care Will Continue to Grow"
      EBRI Notes, Vol. 24, No. 6, June 2003
     PAUL FRONSTIN
        Employee Benefit Research Institute (EBRI)


"EBRI Research Highlights: Health Benefits"
      EBRI Issue Brief, No. 257, May 2003
     KENNETH J. MCDONNELL
        Employee Benefit Research Institute (EBRI)

WORKING PAPERS

"What Do People Buy When They Don't Buy Health Insurance and What
 Does that Say about Why They are Uninsured?"
     HELEN LEVY
        University of Chicago
        Irving B. Harris Graduate School of Public Policy
        Studies
        National Bureau of Economic Research (NBER)
     THOMAS C. DELEIRE
        University of Chicago
        Irving B. Harris Graduate School of Public Policy
        Studies
        Harvard University
        John F. Kennedy School of Government


"Quality and Employers' Choice of Health Plan"
     MICHAEL CHERNEW
        University of Michigan at Ann Arbor
        Department of Economics
        National Bureau of Economic Research (NBER)
     GAUTAM GOWRISANKARAN
        Washington University, St. Louis
        John M. Olin School of Business
        National Bureau of Economic Research (NBER)
        University of Minnesota - Twin Cities
        Department of Economics
        Harvard University
        Federal Reserve Bank of San Francisco
     CATHERINE G. MCLAUGHLIN
        University of Michigan at Ann Arbor
        Department of Health Management and Policy
     TERESA GIBSON
        University of Michigan at Ann Arbor
        Department of Health Management and Policy


"Tax Credits and the Use of Medical Care"
     MICHAEL SMART
        University of Toronto
        Department of Economics
        CESifo (Center for Economic Studies and Ifo
        Institute for Economic Research)
     MARK STABILE
        University of Toronto
        Department of Economics
        National Bureau of Economic Research (NBER)


"Who Gets Health Care?"
     ROBERT W. FOGEL
        University of Chicago
        Graduate School of Business
        National Bureau of Economic Research (NBER)
     CHULHEE LEE
        Seoul National University
        School of Economics


"The Benefits Implications of Recent Trends in Flexible Staffing
 Arrangements"
     SUSAN N. HOUSEMAN
        W.E. Upjohn Institute for Employment Research


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EDITORIAL POLICIES
 To provide the broadest coverage of research in Employee
 Benefits, Compensation & Pension Law we do not referee working
 papers. We accept abstracts of working papers in Employee
 Benefits, Compensation & Pension Law whose topics suit the
 coverage of the journal and which are part of the worldwide
 scholarly discourse.


N E W   and   F O R T H C O M I N G   Articles
_________________________________________________________________

"A Comparison of the USA Health Care Effort with other OECD
 Countries"
      Hacienda Publica Espanola, Vol. 161, No. 2, 2002, Instituto
      de Estudios Fiscales, Copyright

      BY:  EDUARD GRACIA
              Deloitte - Strategy & Operations
           JOAN GIL TRASFí
              University of Barcelona
              Department of Economic Theory

Document:  Available from the SSRN Electronic Paper Collection:
           http://papers.ssrn.com/paper.taf?abstract_id=410201

           Other Electronic Document Delivery:
           http://www.minhac.es/ief/Publicaciones/Revistas/Hacien
           da%20Publica/161_comparison.pdf
           SSRN only offers technical support for papers
           downloaded from the SSRN Electronic Paper Collection
           location. When URLs wrap, you must copy and paste
           them into your browser eliminating all spaces.

 Contact:  EDUARD GRACIA
   Email:  Mailto:egracia@dc.com
  Postal:  Deloitte - Strategy & Operations
           Athene Place
           66 Shoe Lane
           London EC4A 3BQ,    UNITED KINGDOM
   Phone:  (+44) 7879 430 370
 Co-Auth:  JOAN GIL TRASFí
   Email:  Mailto:jgil@eco.ub.es
  Postal:  University of Barcelona
           Department of Economic Theory
           Barcelona,    SPAIN

ABSTRACT:
 We use a sample of OECD countries in order to better understand
 why the US health care expenditure as a percentage of its Gross
 Domestic Product ("health care effort") is so far above any
 other. To this end we employ a descriptive cross-country
 methodology based partially on econometric estimations,
 synthetic indicators and the Lerner's formula of market power,
 that allows us to dismiss as explanatory variables all those
 factors that were not differential across the sample. We advance
 the exploratory hypothesis that the availability of a universal
 public health coverage would increase the price elasticity of
 demand and thus would reduce the control of prices by the
 suppliers.

 Keywords: US health care spending, cross-country health care
 comparisons, price discipline


JEL Classification: H51, I18
______________________________

"National Health Spending up 8.7 Percent Between 2000-2001;
 Spending for Health Care Will Continue to Grow"
      EBRI Notes, Vol. 24, No. 6, June 2003

      BY:  PAUL FRONSTIN
              Employee Benefit Research Institute (EBRI)

Document:  Available from the SSRN Electronic Paper Collection:
           http://papers.ssrn.com/paper.taf?abstract_id=425942

           Other Electronic Document Delivery:
           http://www.ebri.org
           SSRN only offers technical support for papers
           downloaded from the SSRN Electronic Paper Collection
           location. When URLs wrap, you must copy and paste
           them into your browser eliminating all spaces.

 Contact:  PAUL FRONSTIN
   Email:  Mailto:fronstin@ebri.org
  Postal:  Employee Benefit Research Institute (EBRI)
           Suite 600
           2121 K Street, NW
           Washington, DC 20037-1896  UNITED STATES
   Phone:  202-775-6352
     Fax:  202-775-6312

Paper Requests:
 Contact Alicia Willis at Mailto:publications@ebri.org, or 2121 K
 St., NW, Suite 600, Washington, DC 20037-1896.
 Phone:(202)572-7422, Fax:(202)775-6312. Full-Text downloads are
 available from SSRN Online for $7.50.

ABSTRACT:
 This paper discusses national health expenditures for the period
 of 1970-2001.

 Keywords: Health Care Costs

 The PDF for the above title, published in the June 2003 issue
 of EBRI Notes, also contains the fulltext of another June 2003
 EBRI Notes article abstracted on SSRN: "Income of the Elderly
 Population: 2001."


JEL Classification: H51, J32
______________________________

"EBRI Research Highlights: Health Benefits"
      EBRI Issue Brief, No. 257, May 2003

      BY:  KENNETH J. MCDONNELL
              Employee Benefit Research Institute (EBRI)

Document:  Available from the SSRN Electronic Paper Collection:
           http://papers.ssrn.com/paper.taf?abstract_id=413900

           Other Electronic Document Delivery:
           http://www.ebri.org
           SSRN only offers technical support for papers
           downloaded from the SSRN Electronic Paper Collection
           location. When URLs wrap, you must copy and paste
           them into your browser eliminating all spaces.

 Contact:  KENNETH J. MCDONNELL
   Email:  Mailto:MCDONNELL@EBRI.ORG
  Postal:  Employee Benefit Research Institute (EBRI)
           Suite 600
           2121 K Street, NW
           Washington, DC 20037-1896  UNITED STATES
   Phone:  (202) 775-6342
     Fax:  (202) 775-6312

Paper Requests:
 Contact Alicia Willis at Mailto:publications@ebri.org, or 2121 K
 St., NW, Suite 600, Washington, DC 20037-1896.
 Phone:(202)572-7422, Fax:(202)775-6312. Full-Text downloads are
 available from SSRN Online for $7.50.

ABSTRACT:
 This Employee Benefit Research Institute (EBRI) report
 synthesizes highlights of recent EBRI research on health issues.
 Health data in this document include: national health
 expenditures, employment-based health benefits, the uninsured,
 managed care, consumer-driven health benefits, Medicare and
 retiree health benefits, public opinion, and small employers and
 health benefits.

 Keywords: Employment-based Benefits, Health Care Attitudes and
 Opinions, Health Care Costs, Health Insurance Coverage,
 Medicare, Retiree Health Benefits, Uninsured


JEL Classification: I1, J3
______________________________

W O R K I N G   P A P E R   Abstracts
_________________________________________________________________

"What Do People Buy When They Don't Buy Health Insurance and What
 Does that Say about Why They are Uninsured?"

      BY:  HELEN LEVY
              University of Chicago
              Irving B. Harris Graduate School of Public Policy
              Studies
              National Bureau of Economic Research (NBER)
           THOMAS C. DELEIRE
              University of Chicago
              Irving B. Harris Graduate School of Public Policy
              Studies
              Harvard University
              John F. Kennedy School of Government

Document:  Available from the SSRN Electronic Paper Collection:
           http://papers.ssrn.com/paper.taf?abstract_id=421787

Paper ID:  NBER Working Paper No. W9826
    Date:  July 2003

 Contact:  HELEN LEVY
   Email:  Mailto:HLEVY@UCHICAGO.EDU
  Postal:  University of Chicago
           Irving B. Harris Graduate School of Public
           Policy Studies
           1155 East 60th Street
           Chicago, IL 60637  UNITED STATES
 Co-Auth:  THOMAS C. DELEIRE
   Email:  Mailto:T-DELEIRE@UCHICAGO.EDU
  Postal:  University of Chicago
           Irving B. Harris Graduate School of Public
           Policy Studies
           1155 East 60th Street
           Chicago, IL 60637  UNITED STATES

Paper Requests:
 Full-Text downloads are available from SSRN Online for $5.

ABSTRACT:
 Using data from the 1994 through 1998 Consumer Expenditure
 Surveys, we compare household spending on 16 different goods
 (food at home, food away from home, housing, transportation,
 alcohol and tobacco, interest, furniture and appliances, home
 maintenance, clothing, utilities, medical care, health
 insurance, entertainment, personal care, education, and other)
 for insured versus uninsured households, controlling for total
 expenditures and demographic characteristics. The analysis shows
 that the uninsured in the lowest quartile of the distribution of
 total expenditures spend more on housing, food at home, alcohol
 and tobacco, and education than do the insured. In contrast,
 households in the top quartile of the distribution of total
 expenditures spend more on transportation and furniture and
 appliances than do comparable insured households. These results
 are consistent with the idea that poor uninsured households face
 higher housing prices than do poor insured households. Further
 research is necessary to determine whether high housing prices
 can help explain why some households do not have insurance.


JEL Classification: Z1
______________________________

"Quality and Employers' Choice of Health Plan"

      BY:  MICHAEL CHERNEW
              University of Michigan at Ann Arbor
              Department of Economics
              National Bureau of Economic Research (NBER)
           GAUTAM GOWRISANKARAN
              Washington University, St. Louis
              John M. Olin School of Business
              National Bureau of Economic Research (NBER)
              University of Minnesota - Twin Cities
              Department of Economics
              Harvard University
              Federal Reserve Bank of San Francisco
           CATHERINE G. MCLAUGHLIN
              University of Michigan at Ann Arbor
              Department of Health Management and Policy
           TERESA GIBSON
              University of Michigan at Ann Arbor
              Department of Health Management and Policy

Document:  Available from the SSRN Electronic Paper Collection:
           http://papers.ssrn.com/paper.taf?abstract_id=425583

Paper ID:  NBER Working Paper No. W9847
    Date:  July 2003

 Contact:  MICHAEL CHERNEW
   Email:  Mailto:MCHERNEW@UMICH.EDU
  Postal:  University of Michigan at Ann Arbor
           Department of Economics
           611 Tappan Street
           Ann Arbor, MI 48109-1220  UNITED STATES
   Phone:  734-936-1193
 Co-Auth:  GAUTAM GOWRISANKARAN
   Email:  Mailto:gautam_gowrisankaran@nber.org
  Postal:  Washington University, St. Louis
           John M. Olin School of Business
           One Brookings Drive
           Campus Box 1133
           St. Louis, MO 63130-4899  UNITED STATES
 Co-Auth:  CATHERINE G. MCLAUGHLIN
   Email:  Mailto:cmcl@umich.edu
  Postal:  University of Michigan at Ann Arbor
           Department of Health Management and Policy
           109 Observatory
           Ann Arbor, MI 48109-2029  UNITED STATES
 Co-Auth:  TERESA GIBSON
   Email:  Mailto:tgibson@umich.edu
  Postal:  University of Michigan at Ann Arbor
           Department of Health Management and Policy
           109 Observatory
           Ann Arbor, MI 48109-2029  UNITED STATES

Paper Requests:
 Full-Text downloads are available from SSRN Online for $5.

ABSTRACT:
 We seek to understand the relationship between employer
 decisions regarding which health plans firms choose to offer to
 their employees and the performance of those plans. We measure
 performance using data from the Health Plan Employer Data
 Information Set (HEDIS) and the Consumer Assessment of Health
 Plan Survey (CAHPS). We use a unique data set that lists the
 Health Maintenance Organizations (HMOs) available to, and
 offered by, large employers across markets in the year 2000, and
 examine the relationship between plan offerings, performance
 measures and other plan characteristics. We estimate two sets of
 specifications that differ in whether they model plan choice as
 a function of absolute plan performance or plan performance
 relative to competitors. We find that employers are more likely
 to offer plans with strong absolute and relative HEDIS and CAHPS
 performance measures. Our results are consistent with the view
 that large employers are responsive to the interests of their
 employees.


JEL Classification: I11
______________________________

"Tax Credits and the Use of Medical Care"

      BY:  MICHAEL SMART
              University of Toronto
              Department of Economics
              CESifo (Center for Economic Studies and Ifo
              Institute for Economic Research)
           MARK STABILE
              University of Toronto
              Department of Economics
              National Bureau of Economic Research (NBER)

Document:  Available from the SSRN Electronic Paper Collection:
           http://papers.ssrn.com/paper.taf?abstract_id=425591

Paper ID:  NBER Working Paper No. W9855
    Date:  July 2003

 Contact:  MARK STABILE
   Email:  Mailto:mark.stabile@utoronto.ca
  Postal:  University of Toronto
           Department of Economics
           150 St. George Street
           Toronto,  Ontario M5S 3G7   CANADA
   Phone:  416-978-4329
     Fax:  416-978-6713
 Co-Auth:  MICHAEL SMART
   Email:  Mailto:MSMART@CHASS.UTORONTO.CA
  Postal:  University of Toronto
           Department of Economics
           Institute for Policy Analysis
           150 St. George Street
           Toronto,  Ontario M5S 3G7   CANADA

Paper Requests:
 Full-Text downloads are available from SSRN Online for $5.

ABSTRACT:
 Several recent proposals have advocated using the income tax
 system to collect user fees to help fund the health care system.
 While there is a considerable amount of research investigating
 both how individuals respond to tax incentives for employer
 provided health insurance and on the effects of user fees
 payable at the point of service on the use of health care
 services, there is limited evidence on how individuals respond
 to tax incentives when these are not realized until taxes are
 paid. This paper uses existing exemptions in the Canadian tax
 code that allow individuals to deduct the cost of health care or
 health insurance from their taxable income in order to identify
 the tax price elasticity of demand for health care when price
 changes are realized at the end of the tax year. Our results
 suggest that despite not realizing the tax benefit at the time
 of purchase, individuals are quite responsive to changes in the
 tax price of health care. Our elasticity estimates for a wide
 range of health care products are well within the range of
 traditional price elasticity estimates, including in particular
 our estimates for prescription drugs. We also find some evidence
 that suggests individuals trade off risk sharing through
 traditional insurance companies with risk sharing through the
 tax code. That is, as the tax price of health care decreases,
 individuals spend more on health care, but spend less on health
 insurance.


JEL Classification: I1, H2
______________________________

"Who Gets Health Care?"

      BY:  ROBERT W. FOGEL
              University of Chicago
              Graduate School of Business
              National Bureau of Economic Research (NBER)
           CHULHEE LEE
              Seoul National University
              School of Economics

Document:  Available from the SSRN Electronic Paper Collection:
           http://papers.ssrn.com/paper.taf?abstract_id=428364

Paper ID:  NBER Working Paper No. W9870
    Date:  July 2003

 Contact:  ROBERT W. FOGEL
   Email:  Mailto:rwf@cpe.uchicago.edu
  Postal:  University of Chicago
           Graduate School of Business
           Center for Population Economics
           1101 East 58th Street
           Chicago, IL 60637  UNITED STATES
   Phone:  773-702-7709
     Fax:  773-702-2901
 Co-Auth:  CHULHEE LEE
   Email:  Mailto:clee@prome.snu.ac.kr
  Postal:  Seoul National University
           School of Economics
           San 56-1, Silim-dong, Kwanak-ku
           Seoul 151-742,    KOREA

Paper Requests:
 Full-Text downloads are available from SSRN Online for $5.

ABSTRACT:
 Around the world, as in the United States, concern is growing
 about who gets health care. Individuals from different
 socioeconomic backgrounds face distressingly different prospects
 of living a healthy life. Disparities in various measures of
 health between the privileged and the deprived still remain
 wide, despite the long-term tendency toward a healthier society.
 Some investigators believe the shift in the health care system
 in industrial countries from the principle of universal access
 to a more market-oriented system may be one cause of the growing
 disparities; rising income inequality is another potential
 culprit. Policy makers worldwide speak of more efficiently
 delivering 'essential' health care - but disagree on what counts
 as essential and on the optimal mix of private and government
 components of service. After reviewing the economic and
 epidemiological literature on disparities in health and health
 care systems, the question of how to define 'essential' health
 care is considered. The paper concludes with a discussion of the
 policy implications of the analysis.


JEL Classification: I1, I11
______________________________

"The Benefits Implications of Recent Trends in Flexible Staffing
 Arrangements"

      BY:  SUSAN N. HOUSEMAN
              W.E. Upjohn Institute for Employment Research

Document:  Available from the SSRN Electronic Paper Collection:
           http://papers.ssrn.com/paper.taf?abstract_id=369320

Paper ID:  Upjohn Institute Staff Working Paper No. 02-88
    Date:  August 2001

 Contact:  SUSAN N. HOUSEMAN
   Email:  Mailto:houseman@we.upjohninst.org
  Postal:  W.E. Upjohn Institute for Employment Research
           300 South Westnedge Avenue
           Kalamazoo, MI 49007-4686  UNITED STATES
   Phone:  616-343-5541
     Fax:  616-343-3308

Paper Requests:
 Contact Customer Service, W.E. Upjohn Institute for Employment
 Research, Publications, 300 S. Westnedge Ave., Kalamazoo, MI
 49007 USA. Mailto:publications@upjohninstitute.org Phone:
 616-343-4330, Fax: 616-343-7310. Fee: $3.00, includes shipping
 and handling.

ABSTRACT:
 Workers in flexible staffing arrangements - including temporary
 agency, direct-hire temporary, on-call, and contract workers -
 are much less likely than regular, direct-hire employees to be
 covered by laws mandating or regulating workplace benefits.
 Workers in such arrangements, in turn, are much less likely to
 receive pension, health insurance, and other benefits on the
 job. This paper documents these differences in coverage by
 benefits regulations and differences in benefits receipt. The
 paper also reviews evidence on the incentives employers have to
 use workers in these various flexible staffing arrangements.
 Although reducing benefits costs is not the only reason
 employers use flexible staffing arrangements, it is an important
 factor motivating many employers to use them, and the level of
 and growth in these arrangements would be lower in the absence
 of this incentive.

 Keywords: contingent work, part-time, benefits, healthcare,
 pension, contract, Houseman, Upjohn, temporary