When (and Why) Providers Do Not Respond to Changes in Reimbursement Rates

Marcus Dillender, Lu G. Jinks and Anthony T. Lo Sasso
Authors registered in the RePEc Author Service: Anthony Lo Sasso

No 29564, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: Policies to reduce health care payments can lead to health care access issues if providers reduce their supply in response to reimbursement rate reductions. We examine the impact of a policy that reduced reimbursement rates by 30% in a workers’ compensation insurance system that provided generous reimbursement rates relative to other payers even after the rate reduction. The results suggest that providers’ supply is inelastic at the part of the reimbursement distribution that we study. Our estimates indicate that the policy reduced annual workers’ compensation medical costs by over $400 million without affecting injured workers’ health care utilization or health.

JEL-codes: H75 I11 J22 (search for similar items in EconPapers)
Date: 2021-12
New Economics Papers: this item is included in nep-hea, nep-ias and nep-lma
Note: EH PE
References: Add references at CitEc
Citations:

Published as Marcus Dillender & Lu Jinks & Anthony T. Lo Sasso, 2023. "When (and why) providers do not respond to changes in reimbursement rates," Journal of Public Economics, vol 217.

Downloads: (external link)
http://www.nber.org/papers/w29564.pdf (application/pdf)

Related works:
Journal Article: When (and why) providers do not respond to changes in reimbursement rates (2023)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:nbr:nberwo:29564

Ordering information: This working paper can be ordered from
http://www.nber.org/papers/w29564

Access Statistics for this paper

More papers in NBER Working Papers from National Bureau of Economic Research, Inc National Bureau of Economic Research, 1050 Massachusetts Avenue Cambridge, MA 02138, U.S.A.. Contact information at EDIRC.
Bibliographic data for series maintained by ().