Demand Responsiveness from the Rand HIE Demand Responsiveness from - - PowerPoint PPT Presentation

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Oct 01, 2022 365 likes •406 views

Demand Responsiveness from the Rand HIE Demand Responsiveness from the Rand HIE Mannings et al, 1987 Newhouse, 1993 Dollars (1984$) Dollars (1984$) Total Cost Outpatient Inpatient Probability Health Cost Dental Preventi Office Mental

SLIDE 1

Demand Responsiveness from the Rand HIE Demand Responsiveness from the Rand HIE Mannings et al, 1987 Newhouse, 1993 Dollars (1984$) Dollars (1984$) Cost sharing Outpatient Expenses Inpatient Expenses Probability

f any use

Total Health Spending Cost sharing Dental Care Preventi ve Care Office visits Drugs Mental Health free 340 409 86.7 777 free 380 61.3 4.55 82 42.2 25% 260 373 78.8 630 25% 224 48.3 3.33 63 28.4 50% 224 450 74.3 583 50% 219 44.5 3.03 49 13.1 95% 203 315 68 534 95% 147 46.6 2.73 46 18.1 Ratios Ratios Cost sharing Outpatient care Inpatient Care Probability

f any use

Total Health Spending Cost sharing Dental Care Preventi ve Care Office visits Drugs Mental Health 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 25% 0.76 0.91 0.91 0.81 25% 0.59 0.79 0.73 0.77 0.67 50% 0.66 1.10 0.86 0.75 50% 0.58 0.73 0.67 0.60 0.31 95% 0.60 0.77 0.78 0.69 95% 0.39 0.76 0.60 0.56 0.43

SLIDE 2

Demand curves from the Rand HIE: Total spending, outpatient care, inpatient care, and probability of any use versus cost sharing rate 0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8 0.9 1 0.00 0.20 0.40 0.60 0.80 1.00 1.20 Proportion of Free care spending level Consumer cost sharing Outpatient care Inpatient Care Probability of any use Total Health Spending

SLIDE 3

Demand curves for varius types of spending versus cost sharing rate, Rand Health Insurance Experiment, from Newhouse, 1993 0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8 0.9 1 0.00 0.20 0.40 0.60 0.80 1.00 1.20 Proportion of Free care level Cost sharing rate Dental Care Preventive Care Office visits Drugs Mental Health