Question

Identify recent studies in the literature which have investigated the impact of health insurance and income on the demand for health care?

Answer 1

Although there is an extensive literature on the differences in health-related outcomes between people with and without health insurance, and between people with different forms of insurance coverage, there is still considerable uncertainty over the fraction of these differences that are caused by insurance status. Patients and their health care providers have incentives to increase the use of services when insurance coverage (or more generous coverage) is available,suggesting that coverage status could plausibly affect treatment intensity. To the extent that medical services affect health, there may also be an effect on healthoutcomes.
Nevertheless, there are substantial legal and ethical barriers to treating patients differently depending on their insurance status. Moreover, people with no insurance, or with less generous coverage, differ in ways that may exaggerate the true effects of insurance status.

For individuals, income is one of the strongest and most important for maintaining health and also in treatment of disease. Improving the income of the poorest members of society is often proposed as a way of improving their health, and hence reducing health inequalities. People who earn high income they spend more on their health. And people who earn less income they spend less because they have to save and spend a part of income in other activities.