Huckfeldt, Peter J.
[Author]
;
Haviland, Amelia
[Other];
Mehrotra, Ateev
[Other];
Sood, Neeraj
[Other];
Wagner, Zachary
[Other]National Bureau of Economic Research
Patient Responses to Incentives in Consumer-directed Health Plans
Published:
Cambridge, Mass: National Bureau of Economic Research, February 2015
Published in:NBER working paper series ; no. w20927
Extent:
1 Online-Ressource
Language:
English
DOI:
10.3386/w20927
Identifier:
Reproduction note:
Hardcopy version available to institutional subscribers
Origination:
Footnote:
Mode of access: World Wide Web
System requirements: Adobe [Acrobat] Reader required for PDF files
Description:
Prior studies suggest that consumer-directed health plans (CDHPs) -characterized by high deductibles and health care accounts- reduce health costs, but there is concern that enrollees indiscriminately reduce use of low-value services (e.g., unnecessary emergency department use) and high-value services (e.g., preventive care). We investigate how CDHP enrollees change use of pharmaceuticals for chronic diseases. We compare two large firms where nearly all employees were switched to CDHPs to firms with conventional health insurance plans. In the first firm's CDHP, pharmaceuticals were subject to the deductible, while in the second firm pharmaceuticals were exempt. Employees in the first firm shifted the timing of drug purchases to periods with lower cost sharing and were more likely to use lower-cost drugs, but the largest effect of the CDHP was to reduce utilization. Employees in the second firm also reduced utilization, but did not shift the timing or use of low cost drugs