_________________________________________________________________

  E M P L O Y E E   B E N E F I T S ,   C O M P E N S A T I O N
                    &   P E N S I O N   L A W
                Vol. 5,  No. 4: February 26, 2004
_________________________________________________________________

Publisher:     LSN Employment, Labor, Compensation & Pension Journals
               a division of
               Social Science Electronic Publishing, Inc. (SSEP)
               and Social Science Research Network (SSRN)

Editor:        PAMELA PERUN
               Urban Institute
               Mailto:pamela@planetnow.com

Copyright:     SSEP, Inc. 2004. All rights reserved.

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                      Topic of This Issue:
                          Health Care
   ___________________________________________________________


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T A B L E   of   C O N T E N T S
_________________________________________________________________


NEW and FORTHCOMING ARTICLES

"Come the Revolution: Are We Finally Ready for Universal Health
 Insurance?"
      California Western Law Review, Vol. 39, p. 303, 2003
     SUSAN ADLER CHANNICK
        California Western School of Law


"HSAs - the 'Sleeper' in the Drug Bill"
      Tax Notes, Vol. 102, No. 8, February 23, 2004
     HENRY J. AARON
        Brookings Institution
        Economic Studies


"Sources of Health Insurance and Characteristics of the
 Uninsured: Analysis of the March 2003 Current Population Survey"
      EBRI Issue Brief, No. 264, December 2003
     PAUL FRONSTIN
        Employee Benefit Research Institute (EBRI)


"Findings from the 2003 Health Confidence Survey: Americans
 Increasingly Worried about Health Care Costs"
      EBRI Notes, Vol. 24, No. 10, October 2003
     RUTH HELMAN
        Mathew Greenwald & Associates
     RACHEL CHRISTENSEN SETHI
        Employee Benefit Research Institute (EBRI)

WORKING PAPERS

"The Battle Over Self-Insured Health Plans, or One Good Loophole
 Deserves Another"
     RUSSELL B. KOROBKIN
        University of California, Los Angeles
        School of Law


"Macroeconomic Conditions, Health Care Costs, and the
 Distribution of Health Insurance"
     SHERRY A. GLIED
        Columbia University
        Mailman School of Public Health
        National Bureau of Economic Research (NBER)
     KATHRINE DIANE JACK
        Indiana University Bloomington


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EDITORIAL POLICIES
 To provide the broadest coverage of research in Employee
 Benefits, Compensation & Pension Law we do not referee working
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 Benefits, Compensation & Pension Law whose topics suit the
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 scholarly discourse.


N E W   and   F O R T H C O M I N G   Articles
_________________________________________________________________

"Come the Revolution: Are We Finally Ready for Universal Health
 Insurance?"
      California Western Law Review, Vol. 39, p. 303, 2003

      BY:  SUSAN ADLER CHANNICK
              California Western School of Law

Document:  Available from the SSRN Electronic Paper Collection:
           http://papers.ssrn.com/paper.taf?abstract_id=447280

 Contact:  SUSAN ADLER CHANNICK
   Email:  Mailto:schannick@cwsl.edu
  Postal:  California Western School of Law
           225 Cedar Street
           San Diego, CA 92101  UNITED STATES
   Phone:  619-525-7081
     Fax:  619-696-9999

ABSTRACT:
 Cyclically, social, economic, and political forces catapult the
 issue of health insurance to the top of the national
 consciousness. Rising health care costs, a relatively long
 recession, rising unemployment, and growing number of uninsured
 Americans makes today just such a time. One factor that
 distinguishes today's health care access crisis from others is
 the impact on a vocal, visible and voting constituency - the
 employed middle-class. A spate of federal and state legislation
 proposing some type of universal health insurance is evidence of
 public dissatisfaction with the health care access status quo.

 I argue that while there may be tacit agreement that it is a
 national disgrace that between 40 and 60 million Americans are
 uninsured at some time during the calendar year, universal
 health insurance is an improbable solution. In a time when
 market models are the accepted answer to many traditionally
 public sector problems, it is hard to imagine that a social
 insurance model for health care could be politically successful.
 Mounting federal and state budget deficits make untenable the
 additional allocations of GDP necessary to fund universal health
 insurance. In addition, social insurance is explicitly dependent
 on the cross-subsidization of health care from the insured to
 the uninsured and from the healthy to the sick. I conclude that
 our culture of individual rights makes such a philosophical
 shift very unlikely.


JEL Classification: D6, H4, I1
______________________________

"HSAs - the 'Sleeper' in the Drug Bill"
      Tax Notes, Vol. 102, No. 8, February 23, 2004

      BY:  HENRY J. AARON
              Brookings Institution
              Economic Studies

 Contact:  HENRY J. AARON
   Email:  Mailto:Haaron@brookings.edu
  Postal:  Brookings Institution
           Economic Studies
           1775 Massachusetts Ave NW
           Washington , DC 200361  UNITED STATES

 ABSTRACT:
 Health savings accounts (HSAs), says Aaron, may well be the most
 important provision of the recently enacted Medicare
 Prescription Drug, Improvement, and Modernization Act. HSAs
 substantially reduce the distinctions between employer-financed
 health insurance and pensions or other employer contributions to
 tax-sheltered retirement saving. Tax treatment of HSAs, he
 explains, is more favorable than that accorded to qualified
 pensions, 401(k) plans, IRAs, or other "tax-sheltered" saving.
 By reducing the barriers between health insurance and retirement
 saving, HSAs should cause many employers to reexamine the form
 and composition of both health and pension benefits. In
 particular, many employers may find it attractive to adopt
 high-deductible insurance and deposit into HSAs amounts at least
 equal to the gap between the old, low-deductible and the new,
 higher deductible and pay for the added cost of that shift
 through cutbacks in defined-contribution pension deposits. Aaron
 concludes that claims that HSAs will have a large impact on
 total health care spending are overblown because only a small
 fraction of total health outlays occurs during episodes of care
 that are less costly than high-deductible insurance limits.

______________________________

"Sources of Health Insurance and Characteristics of the
 Uninsured: Analysis of the March 2003 Current Population Survey"
      EBRI Issue Brief, No. 264, December 2003

      BY:  PAUL FRONSTIN
              Employee Benefit Research Institute (EBRI)

Document:  Available from the SSRN Electronic Paper Collection:
           http://papers.ssrn.com/paper.taf?abstract_id=488806

           Other Electronic Document Delivery:
           http://www.ebri.org
           SSRN only offers technical support for papers
           downloaded from the SSRN Electronic Paper Collection
           location. When URLs wrap, you must copy and paste
           them into your browser eliminating all spaces.

 Contact:  PAUL FRONSTIN
   Email:  Mailto:fronstin@ebri.org
  Postal:  Employee Benefit Research Institute (EBRI)
           Suite 600
           2121 K Street, NW
           Washington, DC 20037-1896  UNITED STATES
   Phone:  202-775-6352
     Fax:  202-775-6312

Paper Requests:
 Contact Alicia Willis at Mailto:publications@ebri.org, or 2121 K
 St., NW, Suite 600, Washington, DC 20037-1896.
 Phone:(202)572-7422, Fax:(202)775-6312. Full-Text downloads are
 available from SSRN Online for $7.50.

ABSTRACT:
 This paper provides historic data through 2002 on the number and
 percentage of nonelderly Americans with and without health
 insurance. It discusses trends in coverage for the 1987-2002
 period and highlights characteristics that typically indicate
 whether an individual is insured. Based on EBRI estimates from
 the U.S. Census Bureau's March 2003 Current Population Survey
 (CPS), it represents 2002 data.


JEL Classification: I1, J3
______________________________

"Findings from the 2003 Health Confidence Survey: Americans
 Increasingly Worried about Health Care Costs"
      EBRI Notes, Vol. 24, No. 10, October 2003

      BY:  RUTH HELMAN
              Mathew Greenwald & Associates
           RACHEL CHRISTENSEN SETHI
              Employee Benefit Research Institute (EBRI)

Document:  Available from the SSRN Electronic Paper Collection:
           http://papers.ssrn.com/paper.taf?abstract_id=465940

           Other Electronic Document Delivery:
           http://www.ebri.org
           SSRN only offers technical support for papers
           downloaded from the SSRN Electronic Paper Collection
           location. When URLs wrap, you must copy and paste
           them into your browser eliminating all spaces.

 Contact:  RACHEL CHRISTENSEN SETHI
   Email:  Mailto:sethi@ebri.org
  Postal:  Employee Benefit Research Institute (EBRI)
           Suite 600
           2121 K Street, NW
           Washington, DC 20037-1896  UNITED STATES
   Phone:  202-775-6330
     Fax:  202-775-6312
 Co-Auth:  RUTH HELMAN
   Email:  Mailto:RUTHHELMAN@GREENWALDRESEARCH.COM
  Postal:  Mathew Greenwald & Associates
           4201 Connecticut Ave., NW
           Suite 620
           Washington, DC 20008  UNITED STATES

Paper Requests:
 Contact Alicia Willis at Mailto:publications@ebri.org, or 2121 K
 St., NW, Suite 600, Washington, DC 20037-1896.
 Phone:(202)572-7422, Fax:(202)775-6312. Full-Text downloads are
 available from SSRN Online for $7.50.

ABSTRACT:
 The sixth annual Health Confidence Survey (HCS) finds that
 almost one-half of Americans continue to be extremely or very
 satisfied with the quality of medical care they receive.
 However, they are increasingly dissatisfied with the costs of
 health insurance and the costs of care not covered by insurance,
 and continue to lose confidence in certain aspects of health
 care as they look to the next 10 years and to the future of the
 Medicare system. They also continue to identify health care as
 one of the nation's most critical issues.

 Keywords: Health care attitudes and opinions


JEL Classification: J32
______________________________

W O R K I N G   P A P E R   Abstracts
_________________________________________________________________

"The Battle Over Self-Insured Health Plans, or One Good Loophole
 Deserves Another"

      BY:  RUSSELL B. KOROBKIN
              University of California, Los Angeles
              School of Law

Document:  Available from the SSRN Electronic Paper Collection:
           http://papers.ssrn.com/paper.taf?abstract_id=503482

Paper ID:  UCLA School of Law Research Paper No. 04-2
    Date:  February 12, 2004

 Contact:  RUSSELL B. KOROBKIN
   Email:  Mailto:Korobkin@law.ucla.edu
  Postal:  University of California, Los Angeles
           School of Law
           405 Hilgard Avenue
           Box 951476
           Los Angeles, CA 90095-1476  UNITED STATES
   Phone:  310-825-1994
     Fax:  310-206-7010

ABSTRACT:
 One of the most perplexing consequences of the Employee
 Retirement Income Security Act's (ERISA) preemption provisions
 is the differential regulatory treatment afforded to
 employer-sponsored health care benefits provided directly to
 employees by the employer's self-insured plan and to benefits
 provided by a third party that sells an insurance policy to the
 employer. Under ERISA's savings clause, states may regulate
 insurance contracts, thus allowing regulators to guarantee
 insured employees a menu of state-mandated health-insurance
 benefits. But under ERISA's deemer clause, self-insured plans
 are immune to such requirements. Since ERISA's passage three
 decades ago, there has been an explosion in the number of
 employers choosing to self-insure their health benefits plans
 and then purchase stop-loss insurance for the plan in order to
 avoid both state mandates and insurance risk. Critics cry foul
 at the use of this regulation-avoidance tactic.

 This Article defends employers' exploitation of the deemer
 clause loophole on the grounds that it is consistent with
 ERISA's clear language, structure, and delicate balance of
 underlying goals. But it argues that ERISA contains a
 complementary savings clause loophole that state regulators can
 exploit by regulating stop-loss insurance companies, thus using
 a self-help remedy to close the deemer clause loophole
 substantially. One good loophole deserves another.

______________________________

"Macroeconomic Conditions, Health Care Costs, and the
 Distribution of Health Insurance"

      BY:  SHERRY A. GLIED
              Columbia University
              Mailman School of Public Health
              National Bureau of Economic Research (NBER)
           KATHRINE DIANE JACK
              Indiana University Bloomington

Document:  Available from the SSRN Electronic Paper Collection:
           http://papers.ssrn.com/paper.taf?abstract_id=457551

Paper ID:  NBER Working Paper No. W10029
    Date:  October 2003

 Contact:  SHERRY A. GLIED
   Email:  Mailto:sag1@columbia.edu
  Postal:  Columbia University
           Mailman School of Public Health
           Division of Health Policy and Management
           600 West 168th St., 6th Floor
           New York, NY 10032  UNITED STATES
     Fax:  212-305-3405
 Co-Auth:  KATHRINE DIANE JACK
   Email:  Mailto:kdjack@indiana.edu
  Postal:  Indiana University Bloomington
           Bloomington, IN 47405  UNITED STATES

Paper Requests:
 Full-Text downloads are available from SSRN Online for $5.

ABSTRACT:
 Prior studies have examined the relationship between
 macroeconomic factors and health insurance for the adult
 population and have evaluated changes in the composition of
 health insurance across the income distribution. We combine
 these types of analysis and examine how labor market
 fluctuations, health care costs, income, and economic structure
 are related to the distribution of health insurance coverage
 across educational groups. We find that there are substantial
 differences in how these factors affect insurance coverage for
 different groups. Variations in unemployment are more important
 in determining insurance coverage for more educated people. The
 price of medical care, by contrast, is a much more important
 determinant of private coverage for the least educated than for
 the most educated. This finding is consistent with differences
 in the valuation of cost-increasing health care technologies
 across education groups.