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What is the impact of duplicate coverage on the demand for health care in Germany?

Author

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  • Vargas, MH
  • Elhewaihi, M

Abstract

Duplicate coverage involves those individuals who hold public health insurance, and purchase additional private coverage. Using data from the German Institute for Economic Research, we try to investigate the impact of duplicate coverage on the demand for healthcare (measured in number of visits to doctors). Given the simultaneity of the choices to take out additional private health insurance coverage, we estimate a negative binomial model to measure this impact. We also estimate a a Full Information Maximun Loglikelihood (FIML), known as Endogenous Switching Poisson Count Model and we compare these results with the standard maximum log likelihood (ML) estimators of the negative binomial model. The Results show that, there is a positive difference on the level of health services demanded when there is a duplicate coverage. We found also that there is evidence to think that in Germany there is a feedback between duplicate coverage and the demand of health services.

Suggested Citation

  • Vargas, MH & Elhewaihi, M, 2007. "What is the impact of duplicate coverage on the demand for health care in Germany?," MPRA Paper 6749, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:6749
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    References listed on IDEAS

    as
    1. Ángel Marcos Vera‐Hernández, 1999. "Duplicate coverage and demand for health care. The case of Catalonia," Health Economics, John Wiley & Sons, Ltd., vol. 8(7), pages 579-598, November.
    2. A. C. Cameron & P. K. Trivedi & Frank Milne & J. Piggott, 1988. "A Microeconometric Model of the Demand for Health Care and Health Insurance in Australia," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 55(1), pages 85-106.
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    More about this item

    Keywords

    Health care services demand; health insurance;

    JEL classification:

    • I11 - Health, Education, and Welfare - - Health - - - Analysis of Health Care Markets
    • I10 - Health, Education, and Welfare - - Health - - - General

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