Work

The Role of Consumer Knowledge of Insurance Benefits in the Demand for Preventative Health

Year: 2003

Type: report

Abstract: In 1992, the United States Centers for Medicare and Medicaid Services (CMS) introduced new insurance coverage for two preventive services-influenza vaccinations and mammograms.Economists typically assume transactions occur with perfect information and foresight.As a test of the value of information, we estimate the effect of consumer knowledge of these benefits on their demand.Treating knowledge as endogenous in a two-part model of demand, we find that consumer knowledge has a substantial positive effect on the use of preventive services.Our findings suggest that strategies to educate the insured Medicare population about coverage of preventive services may have substantial social value.

Source: National Bureau of Economic Research

DOI: 10.3386/w9912

Authors: Stephen Parente, David Salkever, Joan DaVanzo

Institutions: University of Minnesota, National Bureau of Economic Research, Johns Hopkins University, Lewin Group (United States)

Language: English

Topic: Healthcare Policy and Management

Subfield: Economics and Econometrics

Field: Economics, Econometrics and Finance

Domain: Social Sciences

SDG: Good health and well-being

Open Access status: green

Funder: Hope Center for Neurological Disorders

OpenAlex ID: W1549919031

Cites: 12

Cited by: 2

Related to: 10