Modeling Health Care Expenditures and Use

Posted: 18 Jun 2018

See all articles by Partha Deb

Partha Deb

City University of New York, CUNY Hunter College - Department of Economics

Edward C. Norton

University of Michigan at Ann Arbor

Date Written: April 2018

Abstract

Health care expenditures and use are challenging to model because these dependent variables typically have distributions that are skewed with a large mass at zero. In this article, we describe estimation and interpretation of the effects of a natural experiment using two classes of nonlinear statistical models: one for health care expenditures and the other for counts of health care use. We extend prior analyses to test the effect of the ACA's young adult expansion on three different outcomes: total health care expenditures, office-based visits, and emergency department visits. Modeling the outcomes with a two-part or hurdle model, instead of a single-equation model, reveals that the ACA policy increased the number of office-based visits but decreased emergency department visits and overall spending.

Suggested Citation

Deb, Partha and Norton, Edward C., Modeling Health Care Expenditures and Use (April 2018). Annual Review of Public Health, Vol. 39, pp. 489-505, 2018. Available at SSRN: https://ssrn.com/abstract=3197546 or http://dx.doi.org/10.1146/annurev-publhealth-040617-013517

Partha Deb

City University of New York, CUNY Hunter College - Department of Economics ( email )

695 Park Avenue
New York, NY 10021
United States

Edward C. Norton (Contact Author)

University of Michigan at Ann Arbor ( email )

500 S. State Street
Ann Arbor, MI 48109
United States

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