Table 4.

Predicted and Adjusted Medical Care Spending and Underinsurance, Small-Firm Households

	Predicted for Small-Firm HHs*	Adjusted for Moral Hazard Using Large- Firm Spending as the Baseline†	Percentage Difference between Small Firm Predicted and Adjusted	Predicted for Large-Firm HHs*	Difference between Predicted Underinsurance Rates between Small-Firm and Large-Firm Households	Difference in Underinsurance Rates between Small-Firm and Large-Firm Households Adjusting for Moral Hazard Using Large- Firm Spending as the Baseline (Adjusted Small- Firm versus Predicted Large-Firm)	Percentage Increase in Small-Firm versus Large-Firm Difference in Underinsurance Due to Adjustment for Moral Hazard
Mean, total medical care spending (U.S.$)	5,499	5,813	5.7	5,961
Mean, out-of-pocket medical care spending (U.S.$)	1,371	1,444	5.3	1,286
Underinsurance rate (10% threshold)	0.043	0.052	21	0.039	0.004	0.013	225
Underinsurance rate (5% for <200% FPL; 10% others)	0.059	0.068	15	0.055	0.004	0.013	225

^*Predicted values of total medical care spending from the quantile regression model of total spending. Predicted for small-firm households uses both small-firm characteristics and estimated coefficients from small-firm regressions. Predicted for large-firm households uses both large-firm characteristics and estimated coefficients from large-firm regressions. Predicted out-of-pocket spending uses predicted total spending multiplied by estimated cost-sharing. Estimated cost-sharing is the average fraction of out-of-pocket spending to total spending by households' reported total spending decile (separately for small-firm and large-firm households). Predicted underinsurance is based on the ratio of predicted out-of-pocket spending to actual income.

^†Adjusted values are predictions of total medical care spending using small-firm household characteristics and estimates from the large-firm quantile regression model.

HHs, households.