Affordable False Teeth: The Effects of Patient Cost Sharing on Denture Utilization and Subjective Chewing Ability

Michihito Ando and Takaku Reo ()
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Takaku Reo: Institute for Health Economics and Policy, No.11 Toyo-kaiji Bldg, 1-5-11, Nishi-Shinbashi, Minato-ku, Tokyo, 105–0003, Japan

The B.E. Journal of Economic Analysis & Policy, 2016, vol. 16, issue 3, 1387-1438

Abstract: We evaluate the impact of patient cost sharing on the use of dentures and subjective chewing ability exploiting a sharp reduction in the coinsurance rate, the percentage of costs born by the user, from 30 % to 10 % at the age of 70 with a regression discontinuity design. Using data from the Japanese Study of Aging and Retirement (JSTAR), we find that the utilization rate of dentures increases from approximately 50 % to 63 % around the threshold, implying that the extensive margin elasticity of denture usage with respect to the coinsurance rate is about –0.41. In addition, we find this jump is almost entirely due to the change in the rate among women. On the other hand, we do not find a significant improvement in self-reported chewing ability, although chewing ability may not be the only social benefit from dentures. Our empirical findings are also confirmed by complementary analysis with randomization tests.

Keywords: oral health; dentures; price elasticity; regression discontinuity design; cost sharing; randomization test (search for similar items in EconPapers)
JEL-codes: H51 I12 I13 I18 (search for similar items in EconPapers)
Date: 2016
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Citations: View citations in EconPapers (2)

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DOI: 10.1515/bejeap-2015-0194

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