The net effects of medical malpractice tort reform on health insurance losses: the Texas experience

Health Economics Review

Table 5 Difference-in-Differences Regression Analyses of Texas Reforms for Nine State Sample and Multiple Time Periods

	2002–2004	2002–2005	2002–2006	2002–2007	2002–2008	2002–2009	2002–2010
DD Estimator	0.3914*	0.3710	0.0004	0.1473	0.0909	0.1681	−0.3316
DD Estimator	[0.235]	[0.255]	[0.260]	[0.323]	[0.342]	[0.426]	[0.381]
Treatment Dummy	−0.5408*	−0.5408*	−0.5408*	−0.5408*	−0.5408*	−0.5408*	−0.5408*
Treatment Dummy	[0.293]	[0.293]	[0.293]	[0.293]	[0.293]	[0.293]	[0.293]
Reform Dummy	0.0739	0.1404	0.4590***	0.5727***	0.6043***	0.8266***	0.9023***
Reform Dummy	[0.117]	[0.131]	[0.169]	[0.190]	[0.189]	[0.233]	[0.255]
Constant	2.0696***	2.0696***	2.0696***	2.0696***	2.0696***	2.0696***	2.0696***
Constant	[0.201]	[0.201]	[0.201]	[0.201]	[0.201]	[0.201]	[0.201]
Observations	291	283	282	279	275	271	267
R-squared	0.0130	0.0143	0.0276	0.0321	0.0333	0.0438	0.0502

Notes: This table presents the results of several difference-in-differences analyses obtained using the regressions described generally in eq. 1 and only using the subsample of firms operating in 9 states as the non-treated group. The dependent variable, Losses per Enrollee (LPE), is defined as the dollar amount of health insurance losses incurred by a given insurer, in a given state, during a given year, scaled by the number of plan enrollees for a given insurer, in a given state, during a given year. LPE is also scaled by 1000. In the table, “DD estimator” is the difference-in-differences estimator, “Treatment dummy” indicates firms operating in Texas, and “Reform Dummy” indicates years following the enactment of the Texas reform measures. Each column of output represents a separate analysis that compares LPEs in the year 2002 to a given, single year in the future. Clustered standard errors are presented in parentheses and ***indicates p < 0.01, and *indicates p < 0.1

ISSN: 2191-1991