Cover: Cost Sharing for Medical Care Services

Cost Sharing for Medical Care Services

Published 1984

by Joseph P. Newhouse


Download Free Electronic Document

FormatFile SizeNotes
PDF file 0.8 MB

Use Adobe Acrobat Reader version 10 or higher for the best experience.


Purchase Print Copy

 Format Price
Add to Cart Paperback18 pages $20.00

This paper was originally presented as testimony before the Subcommittee on Defense of the United States Senate Appropriations Committee on June 12, 1984. It reviews preliminary findings of the RAND Health Insurance Study, an experiment to learn the effects, both on families' use of medical service and on their health status, of requiring families to pay for a portion of their medical care services. The most important result concerning use was that families for whom all medical services were free spent about 50 percent more than families on the least generous plan (which required payment of 95 percent of bills up to a $1000 maximum). Results with respect to health status indicate that the average person's health changed very little, despite large changes in use; improvements were concentrated in low-income, sick individuals; such things as smoking, weight, and cholesterol levels were unaffected by increased encounters with physicians.

This report is part of the RAND paper series. The paper was a product of RAND from 1948 to 2003 that captured speeches, memorials, and derivative research, usually prepared on authors' own time and meant to be the scholarly or scientific contribution of individual authors to their professional fields. Papers were less formal than reports and did not require rigorous peer review.

This document and trademark(s) contained herein are protected by law. This representation of RAND intellectual property is provided for noncommercial use only. Unauthorized posting of this publication online is prohibited; linking directly to this product page is encouraged. Permission is required from RAND to reproduce, or reuse in another form, any of its research documents for commercial purposes. For information on reprint and reuse permissions, please visit

RAND is a nonprofit institution that helps improve policy and decisionmaking through research and analysis. RAND's publications do not necessarily reflect the opinions of its research clients and sponsors.