Research Report The Urban Institute's Microsimulation Model for Reinsurance
Model Construction and State-Specific Application
Bowen Garrett, Lisa Clemans-Cope, Paul Masi, Randall R. Bovbjerg
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The Reinsurance Institute simulated the effects of reinsurance on individual and employer behavior, observing state-specific characteristics. We constructed a baseline database for each state by reweighting and combining multiple data sources to create a profile of individual-level demographics and health expenditures, allowing for the computation of individual-level premiums. We grouped health insurance units together into risk pools consistent with state market rules to calculate the change a reinsurance subsidy would have on the premium levels faced by individuals and employers. These price changes drove simulated changes in premium and coverage levels, offer and take-up rates, and state costs.
Research Areas Health and health care
Tags Health insurance Health equity State health care reform
Policy Centers Health Policy Center