Patient Cost Sharing and Healthcare Utilization in Early Childhood: Evidence from a Regression Discontinuity Design

Principal Investigator(s):  View help for Principal Investigator(s) Tzu-Ting Yang, Academia Sinica; Hsing-Wen Han, Tamkang University; Hsien-Ming Lien, National Chengchi University

Version:  View help for Version V1

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age_day_05_08_chl_prob6.dta application/x-stata 718.4 KB 10/14/2019 05:58:AM
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age_day_05_08_h_l_trans.dta application/x-stata 881.6 KB 10/14/2019 05:58:AM
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Project Description

Summary:  View help for Summary
This paper estimates the price elasticity of healthcare utilization in early childhood. We employ a regression discontinuity design by exploiting a subsidy that reduces patient cost-sharing for children aged under 3 in Taiwan. Using longitudinal medical claims of over 410,000 children, we find a modest price elasticity of outpatient expenditure (e.g. -0.10 for regular outpatient care). Furthermore, increased cost-sharing at age 3 largely decreases the chance of visiting high-intensity healthcare providers (e.g. teaching hospitals) for minor illnesses. In contrast, children’s utilization of inpatient care is price insensitive, providing a rationale for full inpatient care coverage to children.

Scope of Project

Subject Terms:  View help for Subject Terms Economics
JEL Classification:  View help for JEL Classification
      H51 Government Expenditures and Health
      I13 Health Insurance, Public and Private
      I18 Government Policy • Regulation • Public Health
Geographic Coverage:  View help for Geographic Coverage Taiwan
Universe:  View help for Universe All children under age 4 in Taiwan
Data Type(s):  View help for Data Type(s) administrative records data

Methodology

Response Rate:  View help for Response Rate We use administrative records data.
Sampling:  View help for Sampling We use administrative records data.
Data Source:  View help for Data Source National Health Insurance Research Database from Health and Welfare Data Science Center in Taiwan
Collection Mode(s):  View help for Collection Mode(s) other
Scales:  View help for Scales Not applicable
Weights:  View help for Weights Not applicable
Unit(s) of Observation:  View help for Unit(s) of Observation Individual
Geographic Unit:  View help for Geographic Unit County

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Published Versions

V1 [2020-07-23]

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