Medical Economics

Financing the efficient delivery of medical services while reducing costs for consumers as well as health care providers is among the most challenging domestic policy problems many countries face. RAND addresses health economics issues through innovative, high-profile research in an effort to improve the efficiency of health care organizations, reduce costs for providers and consumers, and improve financing in health care markets.

Research conducted by: RAND Health; Bing Center for Health Economics; RAND Europe

Research Briefs (84)

Hold the Salt: Lowering Sodium Intake Would Improve Health and Save Money — Oct 9, 2009

Details the benefits that would accrue from reducing sodium consumption among Americans, including a reduced prevalence of high blood pressure, lower medical costs, and improved quality of life.

A Policy-Relevant Picture of California's Ambulatory Surgery Centers — Oct 1, 2009

Examines how California's ambulatory surgical centers (ASCs) compare with hospital outpatient surgery departments and how the state compares with other states in regulating ASCs.

Controlling Health Care Spending in Massachusetts — Sep 10, 2009

In 2006, Massachusetts passed landmark legislation ensuring near-universal health insurance coverage to its residents, but rising costs threaten the initiative; this policy brief assesses 21 options for controlling health care spending in the state.

Health Care Cost Growth and the Economic Performance of U.S. Industries — Jul 30, 2009

Suggests that excess growth in health care costs has adverse economic effects and that these effects are more pronounced in industries that have a higher percentage of workers with employer-sponsored insurance.

When Drug Cost-Sharing Increases, Patients Newly Diagnosed with a Chronic Illness Delay Starting Medication — Jun 29, 2009

Describes a study showing that increasing copayments for prescription drugs causes patients newly diagnosed with hypertension, high cholesterol, and diabetes to delay starting treatment, which in turn increases their risk for heart attack and stroke.

Regulating Drug Prices: U.S. Policy Alternatives in a Global Context — Dec 11, 2008

Discusses the effects of regulating drug prices in the United States in terms of the trade-off between benefiting the current generation (with lower prices) and benefiting future generations (with greater pharmaceutical innovation).

Life Expectancy Is Better Than Age as a General Predictor of Health Care Expenditures — Jul 8, 2008

This fact sheet summarizes a study using the 1992-1999 Medicare Current Beneficiary Survey to investigate whether age directly affects health care costs, or whether life expectancy would produce more accurate estimates of future expenditures.

Insurance Companies' Fears of Covering Acupuncture Appear Unfounded — Jun 26, 2008

This fact sheet describes how patients' use of acupuncture affects use of conventional medical services and suggests that acupuncture often substitutes for other, more expensive services, thereby reducing total medical costs.

Is the Economic Burden of Providing Health Insurance Greater for Small Firms Than for Large Firms? — Mar 31, 2008

This research brief reports that, from 2000 to 2005, the economic burden of providing health insurance increased for employers, especially for the smallest firms, and that small firms offered plans of slightly lower quality than did large firms.

Modeling the Health and Medical Care Spending of the Future Elderly — Mar 9, 2008

This research brief summarizes studies showing that medical innovations will improve health and extend life but will likely increase Medicare spending; eliminating obesity and better prevention could save Medicare money and improve health.

State Insurance Mandates and Consumer-Directed Health Plans: Are They Helping Small Business Provide Health Insurance to Employees? — Dec 5, 2007

This research brief describes the effects of state health-insurance mandates and consumer-directed health plans (CDHPs) on the access to and affordability of health insurance for small businesses.

Enrollment in SCHIP Improves Low-Income Children's Quality of Life — Sep 26, 2007

Children newly enrolled in a public health insurance program in California reported improvements such as doing better in school, feeling better physically, and getting along better with their peers.

A Systematic Review of the Adverse Effects of Prescription Drug Cost Sharing — Sep 11, 2007

This fact sheet summarizes a systematic review of published studies to analyze how the cost-sharing features of prescription drug benefits may affect access to prescription drugs and, consequently, health outcomes.

A Look inside the "Doughnut Hole": How Drug-Benefit Limits Affect Retiree Prescription Use — Sep 11, 2007

This research brief examines the likely effects of the gap in the Medicare Part D standard drug benefit after $2,400 in pharmaceutical spending, using data from a private employer.

Do Policies That Target Physicians Who Make Medical Malpractice Payments Reduce Negligent Injuries? — Aug 23, 2007

This fact sheet describes a study that found that policies targeting physicians' medical malpractice payment histories as a way to deter medical malpractice are ineffective, mainly because paying physicians are not the negligent ones.

Health Coverage Options for Military Retirees — Jul 4, 2007

This research brief summarizes the results of a 2006 pilot survey of military retirees, providing information on retirees' enrollment in civilian health care plans and reliance on TRICARE, the Department of Defense-sponsored health insurance.

Behavioral Health Parity: Consequences for Federal Employee Health Plans — Apr 17, 2007

This research brief assesses the effects of the government-required Federal Employees Health Benefits Program's provision of behavioral health benefits equal to its general health benefits on insurers and consumers' use of services and spending.

Severely Overweight Are Fastest Increasing Group of Obese Americans — Apr 9, 2007

The proportion of Americans who are severely obese — about 100 pounds or more overweight — increased by 50 percent from 2000 to 2005, twice as fast as the growth seen in moderate obesity.

Consumer-Directed Health Care: Early Evidence Shows Lower Costs, Mixed Effects on Quality of Care — Feb 8, 2007

This research brief summarizes research on the effect of enrollment in consumer-directed health care (involving plans with high deductibles -- $1,000 or more annually) on the use, cost, and quality of medical care.

Reviewing the returns of research: Capturing payback from funding by the Arthritis Research Campaign — Jan 12, 2007

Research charities are under increasing pressure to improve the translation of new scientific knowledge into benefit for patients. This research brief outlines a novel evaluation of paybacks of research grants by the Arthritis Research Campaign.

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