Measuring the Dollar Value of Employer-Provided Health Insurance Contribution: A Synthetic Approach

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Working Paper Number: SEHSD-WP2017-53

Introduction

A measure of the annual employer contribution to the health insurance premium (EC-HIP) allows for the estimation of trends in cost shifting between employers and employees.

The existing Current Population Survey Annual Social and Economic Supplement (CPS ASEC) estimate, modeled using 1977 data, substantially underestimates EC-HIP.

In 2013, census researchers combined microdata from the 2010 Medical Expenditure Panel Survey Insurance Component (MEPS-IC) and the 2011 CPS ASEC, improving measure accuracy. However, restricted-use MEPS-IC microdata are not available in time for use in the annual CPS ASEC microdata release. 

Objective: To create a new model-based (synthetic) estimate of EC-HIP in the CPS ASEC, using timely publicly available aggregate data.

Page Last Revised - March 19, 2024