The Effect of Health Insurance Coverage on the Use of Medical Services

Carlos Dobkin · Tal Gross

243 citations0/0 files storedAmerican Economic Journal Economic Policy

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Healthcare Policy and Management Healthcare Systems and Reforms Emergency and Acute Care Studies

Abstract

Substantial uncertainty exists regarding the causal effect of health insurance on the utilization of care. We exploit a sharp change in insurance coverage rates that results from young adults “aging out” of their parents' insurance plans to estimate the effect of insurance coverage on the utilization of emergency department (ED) and inpatient services. Aging out results in an abrupt 5 to 8 percentage point reduction in the probability of having health insurance. We find that uninsured status leads to a 40 percent reduction in ED visits and a 61 percent reduction in inpatient hospital admissions. (JEL G22, I11, I18)

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References

1969Reforms as experiments.2000Unmet Health Needs of Uninsured Adults in the United States 2008The Impact of Nearly Universal Insurance Coverage on Health Care Utilization: Evidence from Medicare 1992Rates of Avoidable Hospitalization by Insurance Status in Massachusetts and Maryland 2007The Aggregate Effects of Health Insurance: Evidence from the Introduction of Medicare 2009Does Medicare Save Lives? *

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