The demand for dental care: evidence from a randomized trial in health insurance.
Using data from a randomized trial in health insurance, this paper examines the effect of cost sharing on use of dental services. The data come from a sample of the nonaged, noninstitutionalized civilian population of six urban and rural sites. We find that: reducing the level of cost sharing increases demand for dental services; and dental expenses rise 46% when the coinsurance rate falls from 95% to 0%, subject to a catastrophic limit on out-of-pocket expenses. Of this increase, two-thirds is attributable to an increase in the likelihood of visiting a dentist during the year. Moreover, there is a substantial surge in demand during the first year of more generous coverage. The first-year response to cost sharing is nearly twice the second-year response.
D000293:Adolescent; D000328:Adult; D002648:Child; D002675:Child, Preschool; D002986:Clinical Trials as Topic; D003669:Deductibles and Coinsurance; D003729:Dental Care / Q000191:economics; D003752:Dental Health Services / Q000706:statistics & numerical data; D005260:Female; D006301:Health Services Needs and Demand; D006302:Health Services Research; D006801:Humans; D007223:Infant; D007347:Insurance, Dental; D008297:Male; D011897:Random Allocation; D012424:Rural Population; D014505:Urban Population