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

Hitoshi Shigeoka

American Economic Review, 2014, vol. 104, issue 7, 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.

JEL-codes: G22 I11 I12 I13 I18 J14 (search for similar items in EconPapers)
Date: 2014
Note: DOI: 10.1257/aer.104.7.2152
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Citations: View citations in EconPapers (109)

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Working Paper: The Effect of Patient Cost Sharing on Utilization, Health, and Risk Protection (2013)
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