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  • September 2022
  • Article
  • American Economic Review: Insights

The Impact of Financial Assistance Programs on Health Care Utilization: Evidence from Kaiser Permanente

By: Alyce S. Adams, Raymond Kluender, Neale Mahoney, Jinglin Wang, Francis Wong and Wesley Yin
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Abstract

Most hospitals have financial assistance programs for low-income patients. We use administrative data from Kaiser Permanente to study the effects of financial assistance on health care utilization. Using a regression discontinuity design based on an income threshold for program eligibility, we find that financial assistance increases the likelihood of inpatient, ambulatory, and emergency department encounters by 3.6 pp (59 percent), 13.4 pp (20 percent), and 6.7 pp (53 percent), respectively, though effects dissipate three quarters after program receipt. Financial assistance also increases the detection and management of treatment-sensitive conditions (e.g., drugs treating diabetes), suggesting that financial assistance may increase receipt of high-value care.

Keywords

Healthcare; Utilization; Financial Assistance; Health Care and Treatment; Social Issues; Poverty; Health Industry

Citation

Adams, Alyce S., Raymond Kluender, Neale Mahoney, Jinglin Wang, Francis Wong, and Wesley Yin. "The Impact of Financial Assistance Programs on Health Care Utilization: Evidence from Kaiser Permanente." American Economic Review: Insights 4, no. 3 (September 2022): 389–407.
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About The Author

Raymond P. Kluender

Entrepreneurial Management
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More from the Authors
  • ELCA's Series A By: Anke Becker, Ray Kluender and William R. Kerr
  • Pay-As-You-Go Insurance: Experimental Evidence on Consumer Demand and Behavior By: Ray Kluender
  • Early Withdrawal of Pandemic Unemployment Insurance: Effects on Earnings, Employment and Consumption By: Kyle Coombs, Arindrajit Dube, Calvin Jahnke, Raymond Kluender, Suresh Naidu and Michael Stepner
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