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

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Project Citation:

Yang, Tzu-Ting, Han, Hsing-Wen , and Lien, Hsien-Ming . Patient Cost Sharing and Healthcare Utilization in Early Childhood: Evidence from a Regression Discontinuity Design. Nashville, TN: American Economic Association [publisher], 2020. Ann Arbor, MI: Inter-university Consortium for Political and Social Research [distributor], 2020-07-23. https://doi.org/10.3886/E111421V1

Project Description

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: Economics

JEL Classification:
      H51 Government Expenditures and Health
      I13 Health Insurance, Public and Private
      I18 Government Policy • Regulation • Public Health

Geographic Coverage: Taiwan

Universe: All children under age 4 in Taiwan

Data Type(s): administrative records data

Methodology

Response Rate: We use administrative records data.

Sampling: We use administrative records data.

Data Source: National Health Insurance Research Database from Health and Welfare Data Science Center in Taiwan

Collection Mode(s): other

Scales: Not applicable

Weights: Not applicable

Unit(s) of Observation: Individual

Geographic Unit: County

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V1 [2020-07-23]

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