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Copayments and Demand for Medical Care: The California Medicaid Experience
Jay Helms, Joseph P. Newhouse and Charles E. Phelps
The Bell Journal of Economics
Vol. 9, No. 1 (Spring, 1978), pp. 192-208
Published by: RAND Corporation
Stable URL: http://www.jstor.org/stable/3003620
Page Count: 17
You can always find the topics here!Topics: Copayments, Coefficients, Cost estimates, Quarterly estimates, Cost estimation models, Stochastic models, Parametric models, Estimation methods, Economic models, Ambulatory care
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This study assesses impacts of a California program in which certain Medicaid beneficiaries were required to make small payments for (previously free) out-of-hospital services. This "copayment" requirement decreased physician visit demand by 8 percent, increased hospital service demand by 17 percent, and increased overall program cost by a (statistically insignificant) 3-8 percent. The estimates derive from behavior comparisons of two groups known to differ, so the results may contain statistical artifacts. If the estimates are correct, however, copayments for ambulatory services in a welfare population may be self-defeating as a method of controlling costs.
The Bell Journal of Economics © 1978 RAND Corporation