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Financing and Demand for Mental Health Services

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  • Thomas G. McGuire

Abstract

This paper surveys the emerging literature on financing and demand for mental health services. Most studies at present simply report the cost experience of members of an insurance pool, and research on demand behavior has been very limited. Nevertheless, some conclusions are possible. First, the responsiveness of demand for outpatient mental health care is greater than the responsiveness of demand for general medical services. Second, demand for mental health services grows over time among members of an insurance pool, even as coverage remains stable. Third, demand of lower income groups is more responsive to insurance than is demand of upper income groups. New research should focus on the effect of financing policy on the choice of setting for care.

Suggested Citation

  • Thomas G. McGuire, 1981. "Financing and Demand for Mental Health Services," Journal of Human Resources, University of Wisconsin Press, vol. 16(4), pages 501-522.
    • Handle: RePEc:uwp:jhriss:v:16:y:1981:i:4:p:501-522
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    Cited by:

    1. Jeff Desimone & Sara Markowitz, 2003. "The effect of price on counselling sessions attended by depression patients," Applied Economics Letters, Taylor & Francis Journals, vol. 10(14), pages 899-903.
    2. Partha Deb & Ann M. Holmes, 1998. "Substitution of physicians and other providers in outpatient mental health care," Health Economics, John Wiley & Sons, Ltd., vol. 7(4), pages 347-361, June.
    3. Mallory Avery & Jessica LaVoice, 2023. "The effect of “failed” community mental health centers on non‐white mortality," Health Economics, John Wiley & Sons, Ltd., vol. 32(6), pages 1362-1393, June.
    4. Partha Deb & Virginia Wilcox‐Gök & Ann Holmes & Jeffrey Rubin, 1996. "Choice of health insurance by families of the mentally ill," Health Economics, John Wiley & Sons, Ltd., vol. 5(1), pages 61-76, January.
    5. Timo R. Lambregts & René C. J. A. Vliet, 2018. "The impact of copayments on mental healthcare utilization: a natural experiment," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 19(6), pages 775-784, July.

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