A structural microsimulation model for demand-side cost-sharing in healthcare

Jan Boone*, Minke Remmerswaal

*Corresponding author for this work

Research output: Contribution to journalArticleScientificpeer-review

Abstract

Demand-side cost-sharing reduces moral hazard in healthcare but increases exposure to out-of-pocket expenditure. We introduce a structural microsimulation model to evaluate both total and out-of-pocket expenditure for different cost-sharing schemes. We use a Bayesian mixture model to capture the healthcare expenditure distributions across different age–gender categories. We estimate the model using Dutch data and simulate outcomes for a number of policies. The model suggests that for a deductible of 300 euros shifting the starting point of the deductible away from zero to 400 euros leads to an average 4% reduction in healthcare expenditure and 47% lower out-of-pocket payments.
Original languageEnglish
Article number102900
JournalJournal of Health Economics
Volume97
DOIs
Publication statusPublished - Sept 2024

Keywords

  • moral hazard
  • out-of-pocket
  • shifted deductible
  • co-insurance
  • Bayesian mixture model
  • microsimulation model

Fingerprint

Dive into the research topics of 'A structural microsimulation model for demand-side cost-sharing in healthcare'. Together they form a unique fingerprint.

Cite this