DP15981 Increasing price transparency in the Dutch health care market does not affect provider choice

Author(s): Maciej Husiatynski, Tobias Klein, Misja Mikkers
Publication Date: March 2021
Keyword(s): healthcare demand, Price Transparency, provider choice
JEL(s): I11, I13
Programme Areas: Industrial Organization
Link to this Page: cepr.org/active/publications/discussion_papers/dp.php?dpno=15981

Price transparency is often viewed as an effective way to encourage price shopping and thereby lower health care expenditure. Using individual claims data for 6 frequent, non-emergency dermatological procedures, we estimate the short-run effect of unexpected publication of prices by a major Dutch health insurer on spending and provider choice. Visits to the price transparency website surged, but spending, the likelihood to visit a new provider, distance traveled, and type of provider visited remained unaffected.