Cost-Sharing and Productivity

30 Pages Posted: 16 Oct 2012

See all articles by Teresa Gibson

Teresa Gibson

Truven Health Analytics, Ann Arbor

A. Mark Fendrick

University of Michigan at Ann Arbor - Department of Internal Medicine

Michael Chernew

Harvard University - Department of Health Care Policy; National Bureau of Economic Research (NBER)

Date Written: September 2012

Abstract

A growing body of literature examines the cross price elasticities between different health care services. For example, increasing the patient out of pocket price for some health care services increases the utilization of other health care services. Yet, the literature has generally ignored the connection between cost sharing for health care services and labor market outcomes. This paper examines the direction and magnitude of the reduced form relationship between patient cost-sharing and work loss following methods used to study the impact of cost-sharing and medical spending, finding a positive, quantitatively meaningful association between cost-sharing and hours absent. We find no such association between cost-sharing and the probability of incurring short-term disability days. This suggests that the cross-market ramifications of higher patient cost sharing extend beyond other health care services to include broad labor market outcomes.

Suggested Citation

Gibson, Teresa and Fendrick, A. Mark and Chernew, Michael E., Cost-Sharing and Productivity (September 2012). NBER Working Paper No. w18402, Available at SSRN: https://ssrn.com/abstract=2156793

Teresa Gibson

Truven Health Analytics, Ann Arbor ( email )

777 E. Eisenhower Parkway
Ann Arbor, MI 48108
United States

A. Mark Fendrick

University of Michigan at Ann Arbor - Department of Internal Medicine ( email )

3116 Taubman Center
Ann Arbor, MI 48109-0376
United States

Michael E. Chernew

Harvard University - Department of Health Care Policy ( email )

25 Shattuck Street
Boston, MA 02115
United States

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

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