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Cost Sharing and Patterns of Mental Health Care Utilization

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  • Randall P. Ellis
  • Thomas G. McGuire

Abstract

Deductibles and coverage ceilings are common features of health insurance. This paper proposes and tests a new method for estimating the impact of these health coverage features on demand when total demand during a particular period is not known with certainty at the beginning of the period. We use expected end-of-year price as a proxy for the notion of "effective price" first suggested by Keeler et al. (1982) in a two-stage estimation procedure. Applying the method to the demand for ambulatory mental health care in the presence of a $500 coverage ceiling yields estimated demand responses similar to those obtained by other researchers.

Suggested Citation

  • Randall P. Ellis & Thomas G. McGuire, 1986. "Cost Sharing and Patterns of Mental Health Care Utilization," Journal of Human Resources, University of Wisconsin Press, vol. 21(3), pages 359-379.
    • Handle: RePEc:uwp:jhriss:v:21:y:1986:i:3:p:359-379
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    Cited by:

    1. Kyoungrae Jung & Roger Feldman & A. McBean, 2014. "Demand for prescription drugs under non-linear pricing in Medicare Part D," International Journal of Health Economics and Management, Springer, vol. 14(1), pages 19-40, March.
    2. Bishai, D. & Sindelar, J. & Ricketts, E.P. & Huettner, S. & Cornelius, L. & Lloyd, J.J. & Havens, J.R. & Latkin, C.A. & Strathdee, S.A., 2008. "Willingness to pay for drug rehabilitation: Implications for cost recovery," Journal of Health Economics, Elsevier, vol. 27(4), pages 959-972, July.
    3. 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.
    4. Chad D. Meyerhoefer & Samuel H. Zuvekas, 2010. "New estimates of the demand for physical and mental health treatment," Health Economics, John Wiley & Sons, Ltd., vol. 19(3), pages 297-315, March.
    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.
    6. Albert Okunade & Vasudeva Murthy, 2008. "Are physician and non-physician providers of outpatient mental healthcare substitutes or complements? a conceptual clarification," Health Care Management Science, Springer, vol. 11(4), pages 393-398, December.

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