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

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  • Hitoshi Shigeoka

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.

Suggested Citation

  • Hitoshi Shigeoka, 2013. "The Effect of Patient Cost Sharing on Utilization, Health, and Risk Protection," NBER Working Papers 19726, National Bureau of Economic Research, Inc.
    • Handle: RePEc:nbr:nberwo:19726
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    More about this item

    JEL classification:

    • I1 - Health, Education, and Welfare - - Health
    • I11 - Health, Education, and Welfare - - Health - - - Analysis of Health Care Markets
    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health

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