Health Sector Management Director’s Corner

This week, two economists argue that data from a natural experiment in Oregon provides insight into this question 1. Oregon Medicaid had a waiting list of 90,000 people who wanted access to health insurance coverage. One third of these people were randomly selected to be given coverage and we now know the one year results of this experiment: a 25% increase in total annual health care expenditures including an increased probability of using outpatient care by 35%, of using prescription drugs by 15%, and of hospital admission by 30%. This was accompanied by an increase in use of preventive services (mammogram use increased by 60%). Overall, people with insurance were more likely to report that they are in good or better health status, and less likely to report that they are depressed.

via Health Sector Management Director’s Corner.