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ERIC Number: EJ825700
Record Type: Journal
Publication Date: 2009
Pages: 68
Abstractor: As Provided
ISSN: ISSN-0022-166X
Health Insurance, Medical Care, and Health Outcomes: A Model of Elderly Health Dynamics
Yang, Zhou; Gilleskie, Donna B.; Norton, Edward C.
Journal of Human Resources, v44 n1 p47-114 Win 2009
Prescription drug coverage creates a change in medical care consumption, beyond standard moral hazard, arising both from the differential cost-sharing and the relative effectiveness of different types of care. We model the dynamic supplemental health insurance decisions of Medicare beneficiaries, their medical care demand, and subsequent health outcomes over time. Using parameter estimates obtained with longitudinal individual-level data, we simulate behavior under different drug coverage scenarios. Prescription drug coverage increases drug expenditures by 7 percent to 27 percent over a five-year period. While mortality rates fall slightly, the survivors have poorer health, leading to higher total medical expenditures. (Contains 21 tables, 4 figures and 19 footnotes.)
University of Wisconsin Press. 1930 Monroe Street, Madison, WI 53711-2059. Tel: 608-263-0668; Fax: 608-263-1173; e-mail:; Web site:
Publication Type: Journal Articles; Reports - Research
Education Level: N/A
Audience: N/A
Language: English
Sponsor: N/A
Authoring Institution: N/A
Grant or Contract Numbers: N/A