The Elasticity of Demand for Health Care A Review of the Literature and Its Application to the Military Health System

by Ringel, Jeanne S.; Hosek, Susan D.; Vollard, Ben A.; Mahnovski, Sergej

• ISBN13: 9780833031099
• ISBN10: 0833031090
• Format: Paperback
• Copyright: 2002-05-07
• Publisher: RAND Corporation

Summary

Provides a framework for understanding the effects of changes in the Military Health System benefit structure on the demand for health care services paid for by the DoD.

Table of Contents

Preface	iii
Tables	vii
Summary	ix
Acknowledgments	xvii
Introduction	1	(8)
A Brief Description of the Military Health System	2	(1)
Key Differences Between the Military and Civilian Health Systems	3	(6)
Methods	9	(8)
Description of Elasticity Measures	9	(2)
Own-Price Elasticity of Demand	9	(1)
Income Elasticity of Demand	10	(1)
Cross-Price Elasticity of Demand	11	(1)
Special Issues Regarding the Elasticity of Demand for Health	11	(6)
Measures of Health Care Demand	11	(1)
Price of Health Care	12	(1)
Time Prices and Health Care	12	(1)
Types of Health Care	13	(1)
Interrelationships Between the Demand for Health Insurance and Health Care	14	(1)
Selection Effects	15	(1)
Moral Hazard	15	(1)
Provider Behavior	16	(1)
Review of the Empirical Literature	17	(30)
The Elasticity of Demand for Health Care	17	(12)
Methodologies Used in the Literature	17	(3)
Main Findings	20	(1)
Price Elasticity of Demand for Health Care	20	(7)
Income Elasticity of Demand for Health Care	27	(1)
Time Price Elasticity of Demand for Health Care	28	(1)
Price Elasticity of Demand for Specific Types of Services	29	(10)
Main Findings	29	(3)
Inpatient Versus Outpatient Demand Elasticities	32	(2)
Preventive Care Versus Acute Care Demand Elasticities	34	(1)
Price Elasticity of Demand for Prescription Drugs	35	(1)
Price Elasticity of Demand for Mental Health Services	36	(3)
The Elasticity of Demand for Health Insurance	39	(8)
Main Findings	39	(2)
Studies on the Price Elasticity of Demand for Different Health Plans	41	(3)
The Income Elasticity of Demand for Different Health Plans	44	(1)
The Price Elasticity of Demand for Supplementary Insurance	44	(3)
Considering the Potential Effects of Current and Proposed Changes in Tricare Benefits	47	(4)
Expansion of Pharmacy Benefits	47	(1)
Tricare for Life	48	(1)
Elimination of Copayments in TRICARE Prime	49	(1)
Tricare Prime Remote	50	(1)
Bibliography	51