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

Health Economics Review

Table 7 Difference-in-Differences-in-Differences Regression Analyses of Texas Reforms Including Full Variable Set

	New Jersey	Colorado	41 State Subsample	18 State Subsample	9 State Subsample
DDD Estimator	0.6221**	0.2013	0.1516	−0.0432	0.0817
DDD Estimator	[0.269]	[0.305]	[0.245]	[0.253]	[0.271]
Treatment Dummy	0.1862	0.0750	0.3041***	0.2471***	0.0820
Treatment Dummy	[0.215]	[0.118]	[0.044]	[0.061]	[0.077]
Control Dummy	1.2415***	1.5460***	1.5711***	1.6950***	1.6355***
Control Dummy	[0.232]	[0.280]	[0.114]	[0.143]	[0.174]
Control*Treatment	−0.2435	−0.5480	−0.5730**	−0.6969***	−0.6375**
Control*Treatment	[0.321]	[0.342]	[0.236]	[0.246]	[0.263]
Reform Dummy	−0.0218	−0.0665***	−0.0412***	−0.0263	0.0145
Reform Dummy	[0.052]	[0.023]	[0.013]	[0.017]	[0.023]
Treatment*Reform	−0.1455***	−0.1113***	−0.1523***	−0.1608***	−0.1607***
Treatment*Reform	[0.052]	[0.040]	[0.037]	[0.038]	[0.038]
Control*Reform	0.0805	0.5010**	0.5507***	0.7452***	0.6208***
Control*Reform	[0.136]	[0.208]	[0.091]	[0.114]	[0.150]
Health Status	0.0124	0.0149	−0.0033	−0.0060	−0.0051
Health Status	[0.012]	[0.010]	[0.003]	[0.005]	[0.004]
Dependents	0.0529	0.0553	0.0003	0.0226*	0.0641***
Dependents	[0.071]	[0.040]	[0.005]	[0.013]	[0.021]
Females	−0.0160	0.0069	0.0009	−0.0017	−0.0223*
Females	[0.025]	[0.024]	[0.010]	[0.011]	[0.012]
Median Income	0.0000	0.0000	−0.0000	−0.0000	−0.0000
Median Income	[0.000]	[0.000]	[0.000]	[0.000]	[0.000]
Unemployment Rate	0.0215***	0.0178***	0.0101***	0.0095**	0.0077*
Unemployment Rate	[0.008]	[0.007]	[0.003]	[0.004]	[0.004]
Constant	−0.7595	−1.9630	0.4092	−0.0350	0.0713
Constant	[1.976]	[1.368]	[0.571]	[0.674]	[0.954]
Observations	2447	2873	42,436	21,281	11,603
R-squared	0.2342	0.3118	0.3472	0.4260	0.3831

Notes: This table presents the results of several difference-in-differences-in-differences analyses obtained using the regressions described generally in eq. 2. 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, “DDD estimator” is the difference-in-differences-in-differences estimator, “Treatment dummy” indicates firms operating in Texas, “Reform Dummy” indicates years following the enactment of the Texas reform measures, “Control dummy” indicates firms operating as health insurers, “Control*Treatment” is the interaction of Control dummy and Treatment dummy, “Treatment*Reform” is the interaction of Treatment dummy and Reform dummy, and “Control*Reform” is the interaction of Control dummy and Reform dummy. “Health status”, “Dependents”, “Females”, “Median income” and “Unemployment rate” are all state-level demographic control variables previously described. Each column of output represents a separate analysis that differs only by the subsample of firms used as non-treated groups. Clustered standard errors are presented in parentheses and ***indicates p < 0.01, **indicates p < 0.05, and *indicates p < 0.1

ISSN: 2191-1991