The National Bureau of Economic Research (NBER) has released a study, finding that households containing at least one family member with a chronic illness typically have less generous employer-sponsored health coverage than households without such individuals.  Comparing households’ out-of-pocket (OOP) expenses with their total health care spending, the authors assess coverage generosity based on the ratio of OOP spending to total health spending.  The study found that households with a family member with a chronic illness generally had higher proportions of OOP spending to total health spending than their counterparts.  However, the authors assert that this disparity is not due to variations in plan benefits but rather to the use patterns consistent with chronic illnesses, noting that individuals with chronic illnesses typically have higher expenditures in traditionally less generous coverage categories, including prescription drug coverage.  The study suggests that current health plan designs may have a negative financial impact on the chronically ill, which may negatively affect their outcomes if high costs impede their ability to adhere to treatment regimens.

Abraham, Jean M., Royalty, Anne Beeson and DeLeire, Thomas. (2011). Gauging the generosity of employer-sponsored insurance: differences between households with and without a chronic condition. The National Bureau of Economic Research, 17232. http://www.nber.org/papers/w17232

Authors: Jean M. Abraham, Anne B. Royalty, and Thomas DeLeire.