PREVENTIVE CARE AND INSURANCE COVERAGE

Stephan F. Gohmann

Contemporary Economic Policy, 2005, vol. 23, issue 4, 513-528

Abstract: This article examines how having a choice of health plans, HMO enrollment, and health status affect the use of preventive services. For preventive services use, HMO enrollment is endogenous for workers with a choice of plans, but is exogenous for workers who do not have a choice. Relative to a model that ignores the effect of a choice of plans, the effect of HMO enrollment on the use of preventive treatments is reduced. Individuals who do not have a choice of plans but are enrolled in HMOs are more likely to use preventive services than are individuals who choose HMOs. (JEL I10, I11, I12)

Date: 2005
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