NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

The Role of Consumer Knowledge of Insurance Benefits in the Demand for Preventative Health

Stephen T. Parente, David Salkever, Joan DaVanzo

NBER Working Paper No. 9912
Issued in August 2003
NBER Program(s):   HE

In 1992, the United States Centers for Medicare and Medicaid Services (CMS) introduced new insurance coverage for two preventive services influenza vaccinations and mammograms. Economists typically assume transactions occur with perfect information and foresight. As a test of the value of information, we estimate the effect of consumer knowledge of these benefits on their demand. Treating knowledge as endogenous in a two-part model of demand, we find that consumer knowledge has a substantial positive effect on the use of preventive services. Our findings suggest that strategies to educate the insured Medicare population about coverage of preventive services may have substantial social value.

download in pdf format
   (230 K)

email paper

The NBER Bulletin on Aging and Health provides summaries of publications like this.  You can sign up to receive the NBER Bulletin on Aging and Health by email.

Machine-readable bibliographic record - MARC, RIS, BibTeX

Document Object Identifier (DOI): 10.3386/w9912

Published: Stephen T. Parente & David S. Salkever & Joan DaVanzo, 2005. "The role of consumer knowledge of insurance benefits in the demand for preventive health care among the elderly," Health Economics, John Wiley & Sons, Ltd., vol. 14(1), pages 25-38.

Users who downloaded this paper also downloaded* these:
Currie, Decker, and Lin w14173 Has Public Health Insurance for Older Children Reduced Disparities in Access to Care and Health Outcomes?
Meredith, Robinson, Walker, and Wydick w19312 Keeping the Doctor Away: Experimental Evidence on Investment in Preventative Health Products
Sinaiko, Afendulis, and Frank w19639 Enrollment in Medicare Advantage Plans in Miami-Dade County: Evidence of Status Quo Bias?
Hanushek, Rivkin, and Taylor w5548 Aggregation and the Estimated Effects of School Resources
Rajan and Zingales w4875 What Do We Know About Capital Structure? Some Evidence from International Data
 
Publications
Activities
Meetings
NBER Videos
Themes
Data
People
About

National Bureau of Economic Research, 1050 Massachusetts Ave., Cambridge, MA 02138; 617-868-3900; email: info@nber.org

Contact Us