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Stephen T. Parente , University of Minnesota Roger Feldman , University of Minnesota

What is the Impact of the Internet on Medical Care Use and Cost? New Findings from a Consumer Driven Health Plan. Stephen T. Parente , University of Minnesota Roger Feldman , University of Minnesota Regina Levin , Definity Health Jon B. Christianson , University of Minnesota

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Stephen T. Parente , University of Minnesota Roger Feldman , University of Minnesota

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  1. What is the Impact of the Internet on Medical Care Use and Cost? New Findings from a Consumer Driven Health Plan Stephen T. Parente, University of Minnesota Roger Feldman, University of Minnesota Regina Levin, Definity Health Jon B. Christianson, University of Minnesota Funded by the Robert Wood Johnson Foundation Health Care Financing and Organization Initiative. June, 2005

  2. Presentation Overview • A Conceptual Model for Effect of Internet Use on Medical Care Demand within a Consumer Driven Health Plan • Descriptive Statistics from one Large CDHP • Empirical Study Setting & Data • Research Questions • Statistical Modeling Using Instrumental Variables • Results • Implications

  3. A Conceptual Model of the Impact of CDHP Internet Search on Medical Care Demand Medical Care Demand Get CDHP Knowledge No Demand Health plan-related Internet Search Medical Care Demand Don’t get CDHP Knowledge No Demand 1st Stage 2nd Stage 3rd Stage

  4. How Has the Internet Been Used in a CDHP? Descriptive Statistics from a CDHP • How many CDHP members go online? • Who uses the health plan web site? • What are members looking at the web site?

  5. What is the Impact of the CDHP Web Portal Use on Total Expenditure?

  6. Do members use their health plan website for health information?

  7. Who uses the health plan web site? Family is the unit of analysis

  8. What are members looking at? 2004 data; Family is the unit of analysis

  9. Research Questions • What is the Impact of the CDHP Web Portal Use on Total Expenditure? • What is the Impact of Pharmacy Web Information on Rx Expenditure? • What is the Impact of Active Monitoring of Personal Care Account (PCA) on Spending?

  10. Econometric Model of Three Stages • Internet usei = f(agei, genderi, incomei, health statusi, prior health plani,t-1, information preferencesi, eii) • Knowledgei = f(Ineti, agei, genderi, incomei, health statusi, prior health plani,t-1, other knowledgei,,,e21) • Medical Care Demandi = f(Ineti, Knowledgei, agei, genderi, incomei, health statusi, prior health plani,t-1,,,e31) Used an instrumental variables approach for estimation.

  11. What is the Impact of the CDHP Web Portal Use on Total Expenditure?

  12. What is the Impact of Pharmacy Web Information on Rx Expenditure?

  13. What is the Impact of Pharmacy Web Information on Rx Expenditure?

  14. What is the Impact of Active Monitoring of PCA on Spending?

  15. What is the Impact of Active Monitoring of PCA on Spending?

  16. Implications • Use of the Internet by CDHP subscribers may be associated with moral hazard in all cases examined, except pharmacy. • The value of the Internet as the enabler of a lower-cost ‘Consumer-driven’ health plan is not clear. • May need long-term data to see if what seems like moral hazard may be cost-savings in the long run (e.g., 5 years out).

  17. For more information on our researchPlease visit:www.ehealthplan.orgThank You!

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