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


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 healthcare utilization. Using a regression discontinuity design based on an income threshold for program eligibility, we find that financial assistance increases the likelihood of an inpatient, ambulatory and emergency department encounter by 3.6 pp (59%), 13.4 pp (20%), and 6.7 pp (53%), 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 financial assistance may increase receipt of high-value care.

SUBMITTER: Adams A 

PROVIDER: S-EPMC9634821 | biostudies-literature | 2022 Sep

REPOSITORIES: biostudies-literature

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

Adams Alyce A   Kluender Raymond R   Mahoney Neale N   Wang Jinglin J   Wong Francis F   Yin Wesley W  

American economic review. Insights 20220901 3


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 healthcare utilization. Using a regression discontinuity design based on an income threshold for program eligibility, we find that financial assistance increases the likelihood of an inpatient, ambulatory and emergency department encounter by 3.6 pp (59%), 13.4 pp (20%), and 6.7 pp (53%), respectively, though effects dissipat  ...[more]

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