The Effect of Patient Cost Sharing on Utilization, Health and Risk Protection

37 Pages Posted: 13 Nov 2012 Last revised: 15 Dec 2013

See all articles by Hitoshi Shigeoka

Hitoshi Shigeoka

Simon Fraser University (SFU); National Bureau of Economic Research (NBER)

Multiple version iconThere are 2 versions of this paper

Date Written: December 11, 2013

Abstract

This paper exploits a sharp reduction in patient cost sharing at age 70 in Japan, using a regression discontinuity design to examine its effect on utilization, health, and financial risk arising from out-of-pocket expenditures. Due to the national policy, cost sharing is 60-80 percent lower at age 70 than at age 69. I find that both outpatient and inpatient care are price sensitive among the elderly. While I find little impact on mortality and other health outcomes, the results show that reduced cost sharing is associated with lower out-of-pocket expenditures, especially at the right tail of the distribution.

JEL Classification: I10, I18

Suggested Citation

Shigeoka, Hitoshi, The Effect of Patient Cost Sharing on Utilization, Health and Risk Protection (December 11, 2013). Available at SSRN: https://ssrn.com/abstract=2174740 or http://dx.doi.org/10.2139/ssrn.2174740

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