Table 2.

IV regression results showing demand responses to two types of cost share

	Backward myopic cost share			Forward myopic cost share
Model: log(1/12 + Y)	Coefficient	Elasticity	S.E	Coefficient	Elasticity	S.E
All Spending	−1.26	−0.44	0.044	−1.26	−0.41	0.041
Outpatient	−0.86	−0.29	0.034	−0.91	−0.28	0.033
Inpatient	−2.18	−0.30	0.045	−17.37	−2.35	0.357
Pharmaceutical	−1.00	−0.44	0.040	−1.12	−0.51	0.045
Maternity	−0.27	−0.09	0.042	−0.39	−0.12	0.060
MH/SA	−0.62	−0.26	0.046	−0.93	−0.39	0.069
ER	−0.12	−0.04	0.024	−0.51	−0.17	0.102
Room and Board	−1.44	−0.20	0.069	−8.18	−1.14	0.389
Non specialty visits	−0.73	−0.25	0.041	−0.90	−0.28	0.046
Home visits	−0.06	−0.01	0.071	−0.25	−0.05	0.326
Prevention	−0.34	−0.02	0.009	−4.86	−0.29	0.123
Surgical procedures	1.33	0.07	0.098	28.85	1.52	2.139
Surgical supplies/devices	−3.13	−0.22	0.090	−80.88	−5.76	2.318
Specialty visits	−0.80	−0.32	0.033	−1.10	−0.42	0.043
Dialysis	0.17	0.02	0.156	0.31	0.04	0.290
PT, OT, speech therapy	−0.33	−0.15	0.032	−0.60	−0.27	0.057
Chiropractic	−0.36	−0.23	0.065	−0.47	−0.30	0.083
CAT scans	−0.49	−0.15	0.023	−2.64	−0.80	0.123
Mammograms	−1.02	−0.11	0.027	−19.92	−1.97	0.499
MRIs	−0.95	−0.29	0.022	−7.30	−2.21	0.171
PET scans	−1.13	−0.17	0.081	−7.35	−1.13	0.528
Radiology - diagnostic	−0.42	−0.15	0.018	−1.09	−0.38	0.044
Ultrasounds	−0.38	−0.14	0.015	−1.54	−0.56	0.060
Diagnostic services	−0.53	−0.15	0.021	−1.54	−0.42	0.059
DME	−0.39	−0.18	0.038	−1.00	−0.47	0.097
Ambulances	−0.31	−0.07	0.052	−4.75	−1.00	0.806

Note: N = 170,963,286 individual months. Each row is a different regression using the log(spending plus 1/12) as the dependent variable. Each model includes individual*year fixed effects, 12 monthly time dummies and uses employer’s average cost share for that year*plan*family*month, without the own individual, as an instrument. Cluster corrected standard errors use the employer*plan for clusters. Elasticities are evaluated at the mean cost share for that particular type of service, and S.E obtained using the delta method.