Co-pay and Feel Okay: Evidence of Illusory Health Gains from a Health Insurance Reform

Alfredo Paloyo

No 225, SOEPpapers on Multidisciplinary Panel Data Research from DIW Berlin, The German Socio-Economic Panel (SOEP)

Abstract: The reliability of general self-rated health status is examined using the reform of the public health insurance system of Germany in 2004 as a source of exogenous variation. Among others, the reform introduced a co-payment for ambulatory doctor visits and increased the co-payments for prescription drugs. This natural experiment allows identification of the causal impact of the program on self-assessed health and hence reveals the sensitivity of this subjective measure to a perturbation in the insurance system. Using data from the German Socio-Economic Panel, the results indicate that after the policy intervention, the respondents in the treated group perceived their own health status as better than their hypothetical untreated state even when there is no discernible impacton actual health.The reliability of general self-rated health status is examined using the reform of the public health insurance system of Germany in 2004 as a source of exogenous variation. Among others, the reform introduced a co-payment for ambulatory doctor visits and increased the co-payments for prescription drugs. This natural experiment allows identification of the causal impact of the program on self-assessed health and hence reveals the sensitivity of this subjective measure to a perturbation in the insurance system. Using data from the German Socio-Economic Panel, the results indicate that after the policy intervention, the respondents in the treated group perceived their own health status as better than their hypothetical untreated state even when there is no discernible impacton actual health.

Keywords: natural experiment; cognitive dissonance; self-rated health status (search for similar items in EconPapers)
JEL-codes: G22 H43 I18 (search for similar items in EconPapers)
Pages: 24 p.
Date: 2009
New Economics Papers: this item is included in nep-hea and nep-ias
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Citations: View citations in EconPapers (1)

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Related works:
Working Paper: Co-pay and Feel Okay: Evidence of Illusory Health Gains from a Health Insurance Reform (2009)
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Persistent link: https://EconPapers.repec.org/RePEc:diw:diwsop:diw_sp225

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