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Medical Savings Accounts and Preventative Health Care Utilization

Author

Listed:
  • Justin R. Cress

    (Department of Economics, University of Kentucky, U.S.A.)

  • David M. Zimmer

    (Department of Economics, Western Kentucky University, U.S.A.)

Abstract

Introduced during the late 1990's, medical savings accounts (MSAs) increase cost sharing between employers and employees. Despite assurances from proponents claiming cost sharing will stem the tide of rising health care prices and expenditures, skeptics argue that MSA enrollment could reduce utilization of preventative care. This paper estimates preventative care demand models based on data from the National Longitudinal Survey of Youth. These models measure the association between MSA enrollment and the utilization of physicals among adults and doctor visits among children. The models control for endogeneity using a variety of techniques. The results indicate that medical savings account enrollment does not significantly impact the utilization of preventative care.

Suggested Citation

  • Justin R. Cress & David M. Zimmer, 2011. "Medical Savings Accounts and Preventative Health Care Utilization," Journal of Economics and Management, College of Business, Feng Chia University, Taiwan, vol. 7(1), pages 1-22, January.
  • Handle: RePEc:jec:journl:v:7:y:2011:i:1:p:1-22
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    Cited by:

    1. Wouters, Olivier J. & Cylus, Jonathan & Yang, Wei & Thomson, Sarah & McKee, Martin, 2016. "Medical savings accounts: assessing their impact on efficiency, equity, and financial protection in health care," LSE Research Online Documents on Economics 65448, London School of Economics and Political Science, LSE Library.

    More about this item

    Keywords

    health savings account; medical saving accounts; consumer-driven health plans; preventative care;
    All these keywords.

    JEL classification:

    • I11 - Health, Education, and Welfare - - Health - - - Analysis of Health Care Markets
    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health
    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models

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