Cost-Sharing Design Matters: A Comparison of the Rebate and Deductible in Healthcare
We use a regression discontinuity design which exploits the fact that persons younger than eighteen years old neither face a rebate nor a deductible. Our fixed effect estimate shows that for individuals around the age of eighteen, a one euro increase of the deductible reduces healthcare expenditures 18 eurocents more than a euro increase of the rebate. These results demonstrate that differences in the design of a cost-sharing scheme can lead to substantial different effects on total healthcare expenditure.
This is a revised version of the paper (Januray 2019). Compared to the previous version of December 2017, this version includes additional analyses, assumption tests and a difference-in-differences framework.