Assessing the Effectiveness of Health Care Cost Containment Measures
Nicolas R. Ziebarth
Cornell University; German Institute for Economic Research (DIW Berlin); University of Technology Berlin
January 11, 2011
SOEPpaper No. 352
Using SOEP panel data and difference-in-differences methods, this study is the first to empirically evaluate the effectiveness of four different health care cost containment measures within an integrated framework. The four measures investigated were introduced in Germany in 1997 to reduce moral hazard and public health expenditures in the market for convalescent care. Doubling the daily co-payments was clearly the most effective cost containment measure, resulting in a reduction in demand of about 20 percent. Indirect measures such as allowing employers to cut statutory sick pay or paid vacation during health spa stays did not significantly reduce demand.
Number of Pages in PDF File: 36
Keywords: Health Expenditures, Cost Containment Measures, Copayment, Convalescent Care, SOEP
JEL Classification: H51, I11, I18, J22working papers series
Date posted: January 29, 2011 ; Last revised: March 26, 2011
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