Source of health insurance coverage and employment survival among newly disabled workers: Evidence from the health and retirement study

We use prospective longitudinal data on newly disabled older workers to examine the effect of employer sponsorship of health insurance (ESHI) on post-onset employment and disability insurance claiming. We compare outcomes of workers with ESHI and no access to spousal coverage prior to onset with outcomes of two comparison groups: individuals with ESHI who also have access to spousal coverage and those who are covered by a spouse’s employer prior to onset. We find evidence of "employment lock" among the 20 percent of individuals whose disabilities do not impact their immediate physical capacity but are associated with high medical costs.