American Economic Review
ISSN 0002-8282 (Print) | ISSN 1944-7981 (Online)
The Effect of Patient Cost Sharing on Utilization, Health, and Risk Protection
American Economic Review
vol. 104,
no. 7, July 2014
(pp. 2152–84)
Abstract
This paper exploits a sharp reduction in patient cost sharing at age 70 in Japan, using a regression discontinuity design to examine its effect on utilization, health, and financial risk arising from out-of-pocket expenditures. Due to the national policy, cost sharing is 60–80 percent lower at age 70 than at age 69. I find that both outpatient and inpatient care are price sensitive among the elderly. While I find little impact on mortality and other health outcomes, the results show that reduced cost sharing is associated with lower out-of-pocket expenditures, especially at the right tail of the distribution.Citation
Shigeoka, Hitoshi. 2014. "The Effect of Patient Cost Sharing on Utilization, Health, and Risk Protection." American Economic Review, 104 (7): 2152–84. DOI: 10.1257/aer.104.7.2152Additional Materials
JEL Classification
- G22 Insurance; Insurance Companies; Actuarial Studies
- I11 Analysis of Health Care Markets
- I12 Health Production
- I13 Health Insurance, Public and Private
- I18 Health: Government Policy; Regulation; Public Health
- J14 Economics of the Elderly; Economics of the Handicapped; Non-labor Market Discrimination