TY - JOUR AU - Shigeoka, Hitoshi TI - The Effect of Patient Cost Sharing on Utilization, Health, and Risk Protection JF - National Bureau of Economic Research Working Paper Series VL - No. 19726 PY - 2013 Y2 - December 2013 DO - 10.3386/w19726 UR - http://www.nber.org/papers/w19726 L1 - http://www.nber.org/papers/w19726.pdf N1 - Author contact info: Hitoshi Shigeoka Department of Economics Simon Fraser University 8888 University Drive, WMC 4653 Barnaby, BC V5A 1S6 CANADA Tel: 778/782-5348 E-Mail: hitoshi_shigeoka@sfu.ca M3 - presented at "Measuring and Modeling Health Care Costs", October 18-19, 2013 AB - This paper exploits a sharp reduction in patient cost sharing at age 70 in Japan, using a regression discontinuity design to examine its effect on utilization, health, and financial risk arising from out-of-pocket expenditures. Due to the national policy, cost sharing is 60-80 percent lower at age 70 than at age 69. I find that both outpatient and inpatient care are price sensitive among the elderly. While I find little impact on mortality and other health outcomes, the results show that reduced cost sharing is associated with lower out-of-pocket expenditures, especially at the right tail of the distribution. ER -