|Employer-Sim Microsimulation Model: Model Development and Application to Estimation of Tax
Subsidies to Health Insurance
|Employment-related health coverage is the predominant form of health insurance in the
nonelderly, US population. Developing sound policies regarding the tax treatment of employersponsored
insurance requires detailed information on the insurance benefits offered by
employers as well as detailed information on the characteristics of employees and their familes.
Unfortunately, no nationally representative data set contains all of the necessary elements. This
paper describes the development of the Employer-Sim model which models tax-based health
policies by using data on workers from the Medical Expenditure Panel Survey Household
Component (MEPS HC) to form synthetic workforces for each establishment in the Medical
Expenditure Panel Survey Insurance Component (MEPS IC). This paper describes the
application of Employer-Sim to estimating tax subsidies to employer-sponsored health insurance
and presents estimates of the cost and indcidence of the subsidy for 2008. The paper concludes
by discussing other potential applications of the Employer-Sim model.
|Edward Miller and Thomas M. Selden and Jessica S. Banthin
|Rockville (MD): Agency for Healthcare Research and Quality