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The Impact of Increased Cost-sharing on Utilization of Low Value Services: Evidence from the State of Oregon / Jonathan Gruber, Johanna Catherine Maclean, Bill J. Wright, Eric S. Wilkinson, Kevin Volpp.

NBER Working papers Available online

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Format:
Book
Author/Creator:
Gruber, Jonathan.
Contributor:
National Bureau of Economic Research.
Maclean, Johanna Catherine.
Wright, Bill J.
Wilkinson, Eric S.
Volpp, Kevin.
Series:
Working Paper Series (National Bureau of Economic Research) no. w22875.
NBER working paper series no. w22875
Language:
English
Physical Description:
1 online resource: illustrations (black and white);
Other Title:
Impact of Increased Cost-sharing on Utilization of Low Value Services
Place of Publication:
Cambridge, Mass. National Bureau of Economic Research 2016.
Summary:
In this study we examine the impact of a value-based insurance design (V-BID) program implemented between 2010 and 2013 at a large public employer in the state of Oregon. The program substantially increased cost-sharing, specifically copayments and coinsurance, for several healthcare services believed to be of low value and overused (sleep studies, endoscopies, advanced imaging, and surgeries). Using a differences-in-differences design coupled with granular, administrative health insurance claims data, we estimate the change in low value healthcare service utilization among beneficiaries before and after program implementation relative to a comparison group of beneficiaries who were not exposed to the V-BID. Our findings suggest that the V-BID significantly reduced utilization of targeted services. These findings have important implications for both public and private healthcare policies as V-BID principles are rapidly proliferating in healthcare markets.
Notes:
Print version record
December 2016.

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