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Can the health insurance reforms stop an increase in medical expenditures for middle- and old-aged persons in Japan?

Author

Listed:
  • Tamie Matsuura

    (NLI Research Institute)

  • Masaru Sasaki

    (ISER, Osaka University)

Abstract

Using two-period panel data from the Nippon Life Insurance Research Institute, this paper tests the hypothesis that an increase in the self-pay ratio of medical expenditures associated with the Japanese health insurance reforms of April 2003 reduced household medical expenditures. We find that the increase in the self-pay ratio had a positive but insignificant effect on the share of medical expenses in household expenditure. However, when we employ the data as repeated cross-sectional observations to increase the sample size, the increase in the self-pay ratio has a significantly positive effect on the share of medical expenditures. This provides corroborating evidence that middle- and old-aged persons were unable to reduce their demand for medical services with the increase in the self-pay ratio. An additional finding is that medical services are a necessary good, particularly for those aged 61 years or older and those with medical expenditures accounting for a relatively high share of medical expenditures in high household expenditure.

Suggested Citation

  • Tamie Matsuura & Masaru Sasaki, 2010. "Can the health insurance reforms stop an increase in medical expenditures for middle- and old-aged persons in Japan?," Discussion Papers in Economics and Business 10-13-Rev, Osaka University, Graduate School of Economics, revised Dec 2011.
    • Handle: RePEc:osk:wpaper:1013r
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    References listed on IDEAS

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    More about this item

    Keywords

    Health insurance; Medical expenditures; Engle curve; Middle- and old-aged persons; Japan;
    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

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