Double Coverage and Demand for Health Care: Evidence from Quantile Regression

43 Pages Posted: 1 May 2009 Last revised: 2 May 2009

See all articles by Sara Moreira

Sara Moreira

Bank of Portugal - Economic Research Department

Pedro P. Barros

Universidade Nova de Lisboa

Date Written: May 1, 2009

Abstract

An individual experiences double coverage when he benefits from more than one health insurance plan at the same time. This paper examines the impact of such supplementary insurance on the demand for health care services. Its novelty is that within the context of count data modelling and without imposing restrictive parametric assumptions, the analysis is carried out for different points of the conditional distribution, not only for its mean location.

Results indicate that moral hazard is present across the whole outcome distribution for both public and private second layers of health insurance coverage but with greater magnitude in the latter group. By looking at different points we unveil that double coverage effects are smaller for high levels of usage.

We use data for Portugal on the consumption of doctor visits, taking advantage of particular features of the public and private protection schemes on top of the statutory National Health Service.

Keywords: Demand for health services, Moral hazard, Count data, Quantile regression

JEL Classification: I11, I18, C21, C25

Suggested Citation

Moreira, Sara Patrícia and Pita Barros, Pedro Luis, Double Coverage and Demand for Health Care: Evidence from Quantile Regression (May 1, 2009). Available at SSRN: https://ssrn.com/abstract=1397695 or http://dx.doi.org/10.2139/ssrn.1397695

Sara Patrícia Moreira

Bank of Portugal - Economic Research Department ( email )

Av. Almirante Reis, 71, 6º
Lisboa, 1150-012
Portugal

Pedro Luis Pita Barros (Contact Author)

Universidade Nova de Lisboa ( email )

Campus de Campolide
Lisboa, 1099-032
Portugal
+351 21 383 3624 (Phone)
+351 21 388 6073 (Fax)

HOME PAGE: http://ppbarros.fe.unl.pt

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