Insurance Coverage Transitions And The Use Of Preventive Services

Many factors affect the average American's insurance coverage. Increased medical costs have led to higher insurance premiums and co-pays. Some employers have stopped offering company sponsored medical insurance to their employees or have responded to higher medical costs by shifting more of the cost to the employee or by reducing the level of coverage. Individuals also change jobs more frequently than in the past, often causing lapses in their coverage. As costs for the consumer rise, one of the easiest and most expensive medical services to reduce or eliminate is preventive medical care. However, a reduction in preventive medical care can lead to significantly higher treatment costs in later years. This study uses data from the Medical Expenditure Panel Survey to examine how changes in the level of insurance coverage impact an individual's use of preventive medical services. We find that as individuals transition in and out of coverage, the level of preventative services used changes with insurance status. In particular, individuals characterized by intermittent periods of insurance coverage also have lower utilization rates of preventative service after becoming insured. Our empirical results also suggest that although the Affordable Care Act will lead to greater use of preventive services by individuals, the level of use will be less than levels recommended by the USPSTF. This implies that policy makers and practitioners will also need to consider additional ways to promote greater use of preventive services such as educating individuals to help them more fully understand the benefits of preventive services.