Pricing-out effect from possible user-fee policies under Taiwan’s National Health Insurance

Abstract

This article simulates the pricing-out effect due to various user-fee policies under Taiwan’s National Health Insurance. Our simulation results indicate that the lower income group is more likely to be priced out of the healthcare system than the higher income group. On average, pricing-out effects are 0.04, 0.21, 0.52 and 0.73% of total beneficiaries with respect to the new co-payment policy, the catastrophic insurance policy, the under insurance policy, and the case of no National Health Insurance, respectively. We caution that a reduction of healthcare utilization due to higher user fees could result in some patients being left behind without professional care because the pricing-out effects could be higher than the substitution effects diverting demand to other professional care alternatives.

Keywords::

• national health insurance
• nest multinomial logit model
• user-fee policy

Acknowledgements

The authors would like to thank the anonymous referees for their constructive comments.

Financial & competing interest disclosure:

The authors have no relevant affiliations or financial involvement with any organization or entity with a financial interest in or financial conflict with the subject matter or materials discussed in the manuscript. This includes employment, consultancies, honoraria, stock ownership or options, expert testimony, grants or patents received or pending, or royalties.

No writing assistance was utilized in the production of this manuscript.