The Effects of Coinsurance on Demand for Physician Services

by Charles E. Phelps, Joseph P. Newhouse

Download

Download eBook for Free

FormatFile SizeNotes
PDF file 1.1 MB

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

Purchase

Purchase Print Copy

 FormatList Price Price
Add to Cart Paperback30 pages $20.00 $16.00 20% Web Discount

Analyzes effects of coinsurance on demand for physician services. In a natural experiment, the coverage of 2567 persons varied from full coverage in one year to 25 percent another year. Physician visits and expenditures declined by roughly 25 percent. Decline in ancillary services, while statistically significant, was only about half as great. Usage of different groups of individuals varied inversely with their assumed prices of time. The hypothesis that there was an equal absolute decline in visits and expenditures among all individuals cannot be rejected. It is possible, however, that utilization is a function of both a money price and a time price, and that the time price is lower for female dependents.

This report is part of the RAND Corporation Report series. The report was a product of the RAND Corporation from 1948 to 1993 that represented the principal publication documenting and transmitting RAND's major research findings and final research.

The RAND Corporation 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.