| Abstract: |
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. |