Does full insurance increase the demand for health care?
Stefan Boes () and
Diskussionsschriften from Universitaet Bern, Departement Volkswirtschaft
We estimate the causal eﬀect of having full health insurance on health care expenditures. We take advantage of a unique quasi-experimental setup in which deductibles and co- payments were zero in a managed care plan, and non-zero in regular insurance, until a policy change forced all individuals with an active plan to cover a minimum amount of their expenses. Using panel data and a non-linear difference-in-differences strategy, we find a demand elasticity of about -0.14 comparing full insurance with the cost-sharing model, and a significant upward shift in the likelihood to generate costs.
Keywords: Deductibles; health cost; quasi experiment; changes-in-changes (search for similar items in EconPapers)
JEL-codes: I11 C14 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-hea and nep-ias
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Journal Article: Does Full Insurance Increase the Demand for Health Care? (2016)
Working Paper: Does Full Insurance Increase the Demand for Health Care? (2013)
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Persistent link: https://EconPapers.repec.org/RePEc:ube:dpvwib:dp1305
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