An Econometric Model of Healthcare Demand With Nonlinear Pricing

Health Econ. 2017 Jun;26(6):691-702. doi: 10.1002/hec.3343. Epub 2016 Apr 4.

Abstract

From 2004 to 2012, the German social health insurance levied a co-payment for the first doctor visit in a calendar quarter. We develop a new model for estimating the effect of such a co-payment on the individual number of visits per quarter. The model combines a one-time increase in the otherwise constant hazard rate determining the timing of doctor visits with a difference-in-differences strategy to identify the reform effect. An extended version of the model accounts for a mismatch between reporting period and calendar quarter. Using data from the German Socio-Economic Panel, we do not find an effect of the co-payment on demand for doctor visits. Copyright © 2016 John Wiley & Sons, Ltd.

Keywords: Poisson process; co-payment; count data; hurdle model.

MeSH terms

  • Costs and Cost Analysis / statistics & numerical data*
  • Deductibles and Coinsurance / economics
  • Deductibles and Coinsurance / statistics & numerical data*
  • Delivery of Health Care
  • Germany
  • Health Care Reform / economics
  • Health Care Reform / organization & administration
  • Health Care Reform / statistics & numerical data
  • Health Services Needs and Demand / economics
  • Health Services Needs and Demand / organization & administration
  • Health Services Needs and Demand / statistics & numerical data*
  • Humans
  • Insurance, Health / economics
  • Insurance, Health / organization & administration
  • Models, Econometric*
  • Time Factors