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Related Experiment Videos

[Cost-benefit principle and cost containment]

C Krauth1, F W Schwartz

  • 1Abteilung Epidemiologie und Sozialmedizin, Medizinische Hochschule Hannover.

Medizinische Klinik (Munich, Germany : 1983)
|March 20, 1998
PubMed
Summary

Co-payments in health insurance may hinder timely medical care access, potentially worsening health outcomes. Economic theory suggests limited impact on demand, but co-payments influence initial healthcare seeking behavior.

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Area of Science:

  • Health Economics
  • Public Health Policy

Context:

  • Health insurance often uses benefits-in-kind and co-payments for cost control and to encourage patient responsibility.
  • Economic theory posits limited impact of these instruments on rational demand decisions.

Purpose:

  • To analyze the effectiveness of co-payments in influencing health service demand and cost control.
  • To examine the impact of co-payments on patient decisions regarding healthcare utilization and timing.

Summary:

  • Economic theory suggests benefits-in-kind alone have minimal impact on demand, and co-payments have low control effects.
  • Supplier-induced demand significantly influences healthcare choices post-initial contact.
  • Co-payments critically affect the decision and timing of initial doctor visits, potentially leading to adverse medical outcomes, especially without social policy moderation.

Impact:

  • Co-payments can negatively affect medical outcomes by delaying initial healthcare seeking.
  • Empirical evidence from the French ambulatory care sector supports these theoretical considerations.
  • Policy implications suggest careful consideration of co-payment structures and their interaction with social policies.

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