Skip to main content

Effects of price and deductibles on medical care demand, estimated from survey data

Buy Article:

$51.63 plus tax (Refund Policy)


This paper estimates the price sensitivity of medical care demand from cross-sectional survey data by relating medical consumption to approximated copayment rates resulting from deductibles. Instead of the deductibles itself, a transformation is used that better takes into account that expected expenditures at policy level play an important role in the reaction of consumers with regard to their deductible. This transformation approximates the average expected copayment rate, that is, the portion of expenditures that one may expect - at the beginning of the year - to pay out-of-pocket, given the deductible and given the expected expenditures at policy level. The principal finding is an estimated price elasticity of medical care demand of -0.079. The highest price sensitivity was found for physiotherapy visits (-0.12) and general practitioner visits (-0.085), and the lowest for specialist visits (-0.074) and prescription drugs (-0.056). Hospital care demand appeared not to be affected by deductibles.

Document Type: Research Article


Publication date: October 10, 2001

More about this publication?

Access Key

Free Content
Free content
New Content
New content
Open Access Content
Open access content
Subscribed Content
Subscribed content
Free Trial Content
Free trial content
Cookie Policy
Cookie Policy
ingentaconnect website makes use of cookies so as to keep track of data that you have filled in. I am Happy with this Find out more