The Effect of Patient Cost Sharing on Utilization, Health, and Risk Protection

Hitoshi Shigeoka

No 19726, NBER Working Papers from National Bureau of Economic Research, Inc

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.

JEL-codes: I1 I11 I18 (search for similar items in EconPapers)
Date: 2013-12
New Economics Papers: this item is included in nep-age and nep-hea
Note: EH
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Citations: View citations in EconPapers (7)

Published as Hitoshi Shigeoka, 2014. "The Effect of Patient Cost Sharing on Utilization, Health, and Risk Protection," American Economic Review, American Economic Association, vol. 104(7), pages 2152-84, July.

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Journal Article: The Effect of Patient Cost Sharing on Utilization, Health, and Risk Protection (2014)
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