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Cost Containment and Managed Care: Evidence from German Macro Data

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Author Info

  • Andree Ehlert

    ()
    (Leuphana University of Lueneburg, Germany)

  • Dirk Oberschachtsiek

    ()
    (Leuphana University of Lueneburg, Germany)

  • Stefan Prawda

    ()
    (Leuphana University of Lueneburg, Germany)

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    Abstract

    The major German health care reforms undertaken since the late 1990s resulted in the adoption of selective contracting mechanisms in a formerly sectorally separated health care system. These reforms marked the launch of managed care in Germany that is expected to yield both a higher quality of care and cost containment. We investigate if managed care had an in fluence on the structure of health care expenditure in Germany during the start-up phase of managed care from 2004 to 2008. We focus on pharmaceutical spending by statutory sickness funds (i.e. German law- enforced health insurance). We followed a macroeconomic evaluation approach based on a regional panel data set in contrast to previous research and were thus able to control for a comprehensive set of regional and demographic variables. We discuss alternative model specifications and include a range of sensitivity analyses. Our results suggest that in contrast to public perception the share of managed care contracts has a positive impact on pharmaceutical spending.

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    Bibliographic Info

    Paper provided by University of Lüneburg, Institute of Economics in its series Working Paper Series in Economics with number 284.

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    Length: 28 pages
    Date of creation: Oct 2013
    Date of revision:
    Handle: RePEc:lue:wpaper:284

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    Web page: http://leuphana.de/institute/ivwl.html

    Related research

    Keywords: Managed care; Health care expenditure; Pharmaceutical expenditur; Panel data; German health care reform;

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