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Market Structure and
Concentration |
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| NUMINSst | Number of major medical insurers in state s in year t |
| BCBSst | Blue Cross and Blue Shield organization market share in state s in year t |
| HMOst | HMO market share in state s in year t |
| COMMst | Commercial insurer market share in state s in year t |
| HERFst | Herfindahl index in state s in year t |
| TOP5st | Market share of the largest five insurers in state s in year t |
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Regulation Variables |
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| PREEXst | Maximum number of months that insurers can impose for preexisting condition exclusions in state s in year t (states without any provision are topcoded at six years). |
| SOMALLst | Guaranteed issue, some or all major medical products in state s in year t (yes=1) |
| ALLst | Guaranteed issue, all products in state s in year t (yes=1) |
| GRENEWst | Guaranteed renewal in state s in year t |
| AGEst | Rate band on age rating, calculated as the 1/(maximum rate/minimum rate) in state s in year t. (Maximum = prohibited factor = 1; minimum = no restriction = 0) |
| HEALTHst | Rate band on health rating, calculated as the 1/(maximum rate/minimum rate) in state s in year t. (Maximum = community rating = 1; minimum = no restriction = 0) |
| COMPOSst | Rate band on age rating, calculated as the 1/(maximum rate/minimum rate) in state s |
| RISKDUMst | High risk pool for individuals in state s in year t (individual market only; yes=1) |
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Price of Insurance |
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| LOSSRst | Average loss ratio in state s in year t, calculated among insurers with at least 85 percent of their business as major medical |
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Control Variables |
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| POPst | Nonelderly population (in millions) in state s in year t |
| STATEs | State dummy |
| YEARt | Year dummy |