The RAND Health Insurance Experiment study demonstrated that people factored in costs when making decisions about utilizing health care services. And cost-sharing reduced hospitalizations by about 25%, with little to no negative effect on health status.
For 25 years, this conclusion has been the basis for decisions on health care policy, insurance cost-sharing and copays, and the recent push (in some quarters) for HSA-based health plans.
But some are now thinking the experiment was flawed, and that this flaw may call into question what we now “know” about cost-sharing’s influence.
Insight, analysis & opinion from Joe Paduda


