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What is the impact of duplicate coverage on the demand for health care in Germany?

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  • Vargas, MH
  • Elhewaihi, M

Abstract

Duplicate coverage involves those individuals who hold public health insurance, and purchase additional private coverage. Using data from the German Institute for Economic Research, we try to investigate the impact of duplicate coverage on the demand for healthcare (measured in number of visits to doctors). Given the simultaneity of the choices to take out additional private health insurance coverage, we estimate a negative binomial model to measure this impact. We also estimate a a Full Information Maximun Loglikelihood (FIML), known as Endogenous Switching Poisson Count Model and we compare these results with the standard maximum log likelihood (ML) estimators of the negative binomial model. The Results show that, there is a positive difference on the level of health services demanded when there is a duplicate coverage. We found also that there is evidence to think that in Germany there is a feedback between duplicate coverage and the demand of health services.

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Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 6749.

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Date of creation: 17 Nov 2007
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Handle: RePEc:pra:mprapa:6749

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Keywords: Health care services demand; health insurance;

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  1. �ngel Marcos Vera-Hernández, 1999. "Duplicate coverage and demand for health care. The case of Catalonia," Health Economics, John Wiley & Sons, Ltd., John Wiley & Sons, Ltd., vol. 8(7), pages 579-598.
  2. Cameron, A C & P. K. Trivedi & Frank Milne & J. Piggott, 1988. "A Microeconometric Model of the Demand for Health Care and Health Insurance in Australia," Review of Economic Studies, Wiley Blackwell, Wiley Blackwell, vol. 55(1), pages 85-106, January.
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