What were the main findings of the RAND Health Insurance Experiment?
They concluded: Increased cost sharing is associated with lower rates of drug treatment, worse adherence among existing users, and more frequent discontinuation of therapy. For each 10% increase in cost sharing, prescription drug spending decreases by 2% to 6%, depending on class of drug and condition of the patient.
What are the takeaways from the RAND Health Insurance Study regarding cost sharing?
Key findings Cost sharing reduced the use of both highly effective and less effective services in roughly equal proportions. Cost sharing did not significantly affect the quality of care received by participants.
When was the RAND Health Insurance Experiment?
Between 1974 and 1981, the RAND experiment provided health insurance to more than 5,800 individuals from about 2,000 households in six different locations across the United States, a sample which was designed to be representative of families with adults under the age of 62.
Why are health reforms important?
The goal of health reform is to reduce the number of uninsured, making healthcare more affordable and improving quality of care.
What is true about the RAND health insurance experiment aims to test?
The RAND Health Insurance Experiment (HIE) showed that modest cost sharing reduces use of services with negligible effects on health for the average person.
What was the main conclusion of the RAND Health Insurance Experiment quizlet?
groups, and one group (the “lottery winners”) were much more likely to obtain health insurance. The RAND HIE found that people assigned to the free health plan had the same rate of hospitalization as people assigned to the cost-sharing plans.
Why is reducing healthcare costs important?
Excessive spending on healthcare places significant burdens on American businesses and family budgets and endangers the funding of vital programs such as Medicare and Medicaid.
How can the health reform Act strengthen the economy?
Lower long-term deficits due to the ACA will mean higher national saving, which will increase capital accumulation and reduce foreign borrowing, thereby making workers more productive and increasing national income and living standards over time.
What is the price elasticity of demand for medical care according to the RAND study?
Despite the wide variety of empirical methods and data sources used in the literature, the demand for health care is consistently found to be price inelastic, with values centering around -0.17.
What fraction of those who were offered Medicaid coverage through the Oregon health insurance Experiment successfully enrolled?
If individuals in a selected household submitted the appropriate paperwork within 45 days after the state mailed them an application and demonstrated that they met the eligibility requirements, they were enrolled in OHP Standard. About 30% of selected individuals successfully enrolled.
What the Oregon health Study can tell us about expanding Medicaid?
Our analysis of enrollment into this program found that people who signed up for the waiting list and enrolled in the Oregon Medicaid program were likely to have worse health than those who did not. However, actual enrollment was fairly low, partly because many applicants did not meet eligibility standards.
How do health care costs affect the economy?
Effect on the Economy higher health care spending, they have less income to spend on other goods and services. High health care costs could reduce access to health care, bankrupt consumers and deplete retirement savings.
What reform is needed to lower the cost of healthcare?
The Affordable Care Act is the nation’s health reform law enacted in March 2010. The law aims to reform both our private and public health insurance systems. Since it was enacted, it has helped about 20 million people get health insurance.
Is health care price elastic or inelastic?
Despite a wide variety of empirical methods and data sources, the demand for health care is consistently found to be price inelastic.
What does Rand stand for in healthcare?
Douglas engineer Arthur Emmons Raymond came up with the name Project RAND, from “research and development”. Collbohm suggested that he himself should serve as the project’s first director, which he thought would be a temporary position while he searched for a permanent replacement for himself.
Is the Oregon Health Plan Obamacare?
Oregon’s 4.1 million residents get their health insurance through their employer, the private individual market, Affordable Care Act (ACA; also known as Obamacare) plans, Medicare and the Oregon Health Plan (OHP), which combines Medicaid and Children’s Health Insurance Program (CHIP).