Analysis of the effects of newly introduced or increased user fees on the health status of adults has been hindered by problems measuring health status objectively in survey settings. This analysis used data from social experiments in the US (RAND Health Insurance Experiment) and Indonesia (Indonesian Resource Mobilization Study) involving an exogenous increase in the price of health care and also examined the link between health prices and labor force participation and wages. Evidence from both surveys indicated that increases in health prices are associated with a reduction in health care utilization. Higher prices also had a deleterious effect on more objective indicators of health status including blood pressure anemia vision correction dental health and activities of daily living. On the other hand the more subjective self-reported general health status indicator appeared to improve when prices rose. Given the evidence that higher prices resulted in less use of health care it seems plausible to interpret the self-reported health indicators as being prone to reporting bias associated with exposure to the health care system. Thus those who sought no care and received no information from doctors declared themselves in better health. In both countries the health of the poor was more severely affected by price increases. Higher health prices were also associated with reduced labor force participation especially (in Indonesia) among poor women over 40 years of age with no education. It is likely this finding reflects a causal influence of health on economic productivity.
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