Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/161100 
Year of Publication: 
2017
Series/Report no.: 
IZA Discussion Papers No. 10477
Publisher: 
Institute of Labor Economics (IZA), Bonn
Abstract: 
In this study we examine the impact of a value-based insurance design (V-BID) program implemented between 2010 and 2013 at a large public employer in the state of Oregon. The program substantially increased cost-sharing, specifically copayments and coinsurance, for several healthcare services believed to be of low value and overused (sleep studies, endoscopies, advanced imaging, and surgeries). Using a differences-in-differences design coupled with granular, administrative health insurance claims data, we estimate the change in low value healthcare service utilization among beneficiaries before and after program implementation relative to a comparison group of beneficiaries who were not exposed to the V-BID. Our findings suggest that the V-BID significantly reduced utilization of targeted services. These findings have important implications for both public and private healthcare policies as V-BID principles are rapidly proliferating in healthcare markets.
Subjects: 
healthcare
low value
value-based insurance design
cost-sharing
JEL: 
I1
I11
I18
Document Type: 
Working Paper

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