Examining Substitution: State Strategies to Limit "Crowd Out" in the Era of Children's Health Insurance Expansions. B. Three types of mechanisms are being used by states to enhance the affordability of employer-sponsored insurance.

12/09/1997

While there is no evidence to suggest that employers are strategically eliminating health coverage so that their workers may receive public insurance, several states have been proactive in designing mechanisms to encourage the availability of affordable employer-sponsored insurance. Exhibit 2 exemplifies state mechanisms to limit employers from dropping insurance coverage. Because small businesses, usually defined as less than 50 employees, have difficulty purchasing health insurance at reasonable rates, state efforts to encourage employer-sponsored insurance have specifically targeted small businesses. Oregon, Rhode Island, Washington, Colorado and Massachusetts are examples of states that have either already implemented, or are currently considering, mechanisms to enhance the affordability of employer-sponsored insurance.

Exhibit 2: Mechanisms to Limit Employers from Dropping Insurance Coverage
STATE PROGRAMS

MECHANISMS TO LIMIT EMPLOYERS FROM DROPPING INSURANCE

 

Purchasing Cooperatives

Buy-Ins

Reimbursements

CaliforniaKids      
Children’s Medical Security Plan (MA)    

Under consideration

Colorado Child Health Plan  

Under consideration

 
Florida Healthy Kids Corporation

Xa

   

MinnesotaCare

     
NY Child Health Plus      
Oregon Health Plan

X

   
RiteCare

X

   
Washington Basic Health Plan  

X