The Demand for Dental Care: Evidence from a Randomized Trial in Health InsuranceUsing data from a randomized trial in health insurance, this report examines the effect of cost sharing on use of dental services other than orthodontia. The data come from a nonaged, noninstitutionalized civilian population of four urban and two rural sites. The authors reach two major conclusions: (1) Reducing the level of cost sharing increases demand for dental services; dental expenses rise 46 percent when the coinsurance rate falls from 95 percent to 0 percent, subject to a catastrophic limit on out-of-pocket expenses. (2) Increased income affects dental visits differently than dental expenditures; lower-income individuals tend to have more expensive visits than high-income individuals. |
Contents
Measures of Dental Utilization | 5 |
The Effect of Income on the Use of Dental Services | 12 |
The Effect of Income on the Use of Dental Services | 18 |
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95-percent plan adults analysis annual assigned benefits billed changes characteristics coinsurance rate compared correlation cost sharing covered Dayton Demand dental coverage dental expenses dental insurance dental services depend differences distribution dollars Duan Economic effect enrolled enrollee entry equation errors estimates examine example excluded expect expenditures Health Insurance Health Insurance Experiment health services health status higher income increase Indicator individuals insurance plan INTERCEPT J. P. Newhouse Journal less likelihood limit on out-of-pocket LNINC lower Mean measure mental health middle Morris NOTE observed oral out-of-pocket expenses outpatient participants percent percent more visits person Phelps population positive predictions present Price probability Rand Corporation Randomized receive Regression response to cost sample significant smearing STANDARD POPULATION statistically steady steady-state surge Table tion treatment Trial two-part model users utilization VARIABLE visits WEEKLY