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THE EFFECT OF INSURANCE COVERAGE ON PREVENTIVE CARE.
Marika Cabral1, Mark R Cullen2
1Department of Economics, University of Texas at Austin Department of Economics and NBER, Austin, TX 78712.
Health insurance benefit designs that lower preventive care costs may not increase its use. Instead, preventive care utilization declined, suggesting it complements nonpreventive care.
Area of Science:
- Health Economics
- Health Services Research
- Behavioral Economics
Background:
- Growing number of health insurance plans offer differential coverage for preventive and nonpreventive care.
- Limited understanding exists regarding how individuals utilize preventive services when insurance coverage changes.
- Insurance benefit design is a key factor influencing healthcare utilization patterns.
Purpose of the Study:
- To investigate the impact of differential insurance coverage on preventive care utilization.
- To examine the relationship between the price of nonpreventive care and the utilization of preventive services.
- To determine if preventive care and nonpreventive care are substitutes or complements.
Main Methods:
- Utilized administrative data from a large corporation.
- Employed a difference-in-differences research strategy to analyze changes in benefit design.
- Compared preventive care utilization before and after the implementation of the new insurance benefit design.
Main Results:
- Preventive care utilization did not increase following the insurance benefit design change.
- A decline in preventive care utilization was observed.
- A significant negative cross-price effect was identified between nonpreventive and preventive care.
Conclusions:
- Targeted changes in health insurance coverage for preventive care may not yield desired increases in utilization.
- Nonpreventive care and preventive care appear to be complements, not substitutes.
- Further research is needed to understand the complex relationship between insurance design and healthcare-seeking behaviors.
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