Continuation of Research on Consumer Directed Health Plans: HSA Simulation Model Refinement

In previous work for ASPE, the University of Minnesota developed a model to simulate the effects of the Medicare Modernization Act of 2003 on the take-up of high-deductible health insurance plans. Under the current project, this model was refined in two ways: 1) the effects of prior health status was added to the selection of plan choice, and 2) the method of estimating the tax cost of various subsidy proposals was modified to include an offsetting reduction in tax subsidies for people who drop subsidized employer-sponsored health insurance. Finally, simulation changes in coverage were performed for proposals outlined in the President's 2006 State of the Union speech. [45 PDF pages]