Patient Cost Sharing and Healthcare Utilization in Early Childhood: Evidence from a Regression Discontinuity Design

101 Pages Posted: 13 Oct 2016 Last revised: 19 Feb 2019

See all articles by Hsing-Wen Han

Hsing-Wen Han

Tamkang University - Department of Accounting

Hsien‐Ming Lien

National Chengchi University (NCCU)

Tzu-Ting Yang

Institute of Economics - Academia Sinica

Date Written: February 16, 2019

Abstract

This paper estimates the price elasticity of healthcare utilization in early childhood. We employ regression discontinuity design by exploiting a subsidy that reduces patient cost-sharing for children aged under 3 in Taiwan. Using longitudinal medical claims of over 410,000 children, we find a modest price elasticity of outpatient expenditure (e.g. -0.12 for regular outpatient care). Furthermore, cost-sharing subsidy largely increases the chance of visiting expensive healthcare providers (e.g. teaching hospitals) for minor illnesses. In contrast, children’s utilization of inpatient care is price insensitive. Finally, we find no evidence that subsidy-induced healthcare utilization improves children’s health outcome.

Keywords: Patient cost sharing, Early childhood

JEL Classification: I13

Suggested Citation

Han, Hsing-Wen and Lien, Hsienming and Yang, Tzu-Ting, Patient Cost Sharing and Healthcare Utilization in Early Childhood: Evidence from a Regression Discontinuity Design (February 16, 2019). Available at SSRN: https://ssrn.com/abstract=2851278 or http://dx.doi.org/10.2139/ssrn.2851278

Hsing-Wen Han

Tamkang University - Department of Accounting ( email )

No.151, Yingzhuan Rd., Danshui Dist.,
New Taipei, ROC, 251
Taiwan

Hsienming Lien

National Chengchi University (NCCU) ( email )

No. 64, Chih-Nan Road
Section 2
Wenshan, Taipei, 11623
Taiwan

Tzu-Ting Yang (Contact Author)

Institute of Economics - Academia Sinica ( email )

128 Sec 2, Academia Road
Taipei, 106
Taiwan

Do you have negative results from your research you’d like to share?

Paper statistics

Downloads
276
Abstract Views
1,089
Rank
201,503
PlumX Metrics