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Effect of patient reimbursement method on health‐care utilization: evidence from China
Author(s) -
Zhong Hai
Publication year - 2011
Publication title -
health economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.55
H-Index - 109
eISSN - 1099-1050
pISSN - 1057-9230
DOI - 10.1002/hec.1670
Subject(s) - reimbursement , china , health care , health economics , medline , medicine , business , economics , geography , economic growth , political science , law , archaeology
For most insurers, traditional methods of controlling health‐care demand include deductibles, co‐payments, stop‐losses, and insurance ceilings. This paper examines the effect of the patient reimbursement method of health insurance (immediate reimbursement or later reimbursement) on individuals' health‐care utilization decisions. We find that immediate reimbursement significantly increases the likelihood of patients seeking outpatient treatment in China. We also empirically explore the channels through which immediate reimbursement affects individual's incentives on health‐care demand. Copyright © 2010 John Wiley & Sons, Ltd.