A Structural Microsimulation Model for Demand-Side Cost-Sharing in Healthcare

Minke Remmerswaal and Jan Boone ()
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Jan Boone: CPB Netherlands Bureau for Economic Policy Analysis

No 415, CPB Discussion Paper from CPB Netherlands Bureau for Economic Policy Analysis

Abstract: Demand-side cost-sharing schemes reduce moral hazard in healthcare at the expense of out-of-pocket risk and equity. With a structural microsimulation model, we show that shifting the starting point of the deductible away from zero to 400 euros for all insured individuals, leads to an average 4 percent reduction in healthcare expenditure and 47 percent lower out-of-pocket payments. We use administrative healthcare expenditure data and focus on the price elastic part of the Dutch population to analyze the differences between the cost-sharing schemes. The model is estimated with a Bayesian mixture model to capture distributions of healthcare expenditure with which we predict the effects of cost-sharing schemes that are not present in our data.

JEL-codes: I11 I13 I14 (search for similar items in EconPapers)
Date: 2020-07
New Economics Papers: this item is included in nep-cmp, nep-hea and nep-isf
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Persistent link: https://EconPapers.repec.org/RePEc:cpb:discus:415

DOI: 10.34932/2dcx-9103

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