Journal of Economic Perspectives
ISSN 0895-3309 (Print) | ISSN 1944-7965 (Online)
Patient Cost-Sharing and Healthcare Spending Growth
Journal of Economic Perspectives
(pp. 47–68)
(Complimentary)
Abstract
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.Citation
Baicker, Katherine, and Dana Goldman. 2011. "Patient Cost-Sharing and Healthcare Spending Growth." Journal of Economic Perspectives 25 (2): 47–68. DOI: 10.1257/jep.25.2.47JEL Classification
- G22 Insurance; Insurance Companies
- H51 National Government Expenditures and Health
- I11 Analysis of Health Care Markets
- I18 Health: Government Policy; Regulation; Public Health