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Patient Cost-Sharing and Healthcare Spending Growth

by Baicker, Katherine , Goldman, Dana

in 1955-2010 / Copayments / Cost analysis / Cost control / Cost Control - trends / Cost sharing / Cost Sharing - economics / Cost Sharing - trends / Cost-effectiveness / Costs / Drug Costs - trends / Economic theory / Education / Employer provided health insurance / Employers / Expenditure / Fees & charges / Financial incentives / Financing, Personal - trends / Forecasting / GDP / Gesundheitsfinanzierung / Gesundheitskosten / Gross Domestic Product / Growth rate / Health Benefit Plans, Employee - trends / Health care costs / Health Care Costs - trends / Health care economics / Health care expenditures / Health care industry / Health care policy / Health economics / Health insurance / Health maintenance organizations / Health Policy / Health promotion / Health services / HMOs / Humans / Incentives / Income distribution / Insurance coverage / Insurance policies / Insurance providers / Insurance, Health - economics / Insurance, Health - organization & administration / Insurance, Health - trends / Managed care / Medicaid / Medical care / Medical referrals / Medical research / Medicare / Medicine / Monetary incentives / Motivation / Patient Participation - economics / Patients / Personal health / Prescription drugs / Primary care / Private Sector / Public health / Public policy / Public Sector / Quality of Health Care - economics / Reimbursement / Role / Selbstbeteiligung / Sharing / Social policy / Social security / Studies / Symposium: Constraining Healthcare Costs / Trends / United States / USA / Value

2011

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Patient Cost-Sharing and Healthcare Spending Growth

by Baicker, Katherine , Goldman, Dana

2011

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Patient Cost-Sharing and Healthcare Spending Growth

by Baicker, Katherine , Goldman, Dana

2011

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Journal Article

Patient Cost-Sharing and Healthcare Spending Growth

Baicker, Katherine,

Goldman, Dana

2011

Overview

In this paper, we explore the role patient incentives play in slowing healthcare spending growth. Evidence suggests that while patients do indeed respond to financial incentives, cost-sharing does not uniformly improve value; rather, cost-sharing provisions must be deliberately structured and targeted to reduce care of low marginal value. Other mechanisms may be helpful in targeting particular populations or types of utilization. The spillover effects between privately insured and publicly insured populations as well as market imperfections suggest a potential role for public policy in promoting insurance design that slows spending growth while increasing the health that each dollar buys.

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Publisher

American Economic Association

Subject

/ Cost Control - trends

/ Cost sharing

/ Cost Sharing - economics