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Damage Caps and Defensive Medicine, Revisited

Title
Damage Caps and Defensive Medicine, Revisited
Author
백명호
Keywords
Medical malpractice; Tort reform; Defensive medicine; MEDICARE; Healthcare spending
Issue Date
2017-01
Publisher
ELSEVIER SCIENCE BV
Citation
JOURNAL OF HEALTH ECONOMICS, v. 51, page. 84-97
Abstract
Does tort reform reduce defensive medicine and thus healthcare spending? Several (though not all) prior studies, using a difference-in-differences (DiD) approach, find lower Medicare spending for hospital care after states adopt caps on non-economic or total damages (“damage caps”), during the “second” reform wave of the mid-1980s. We re-examine this issue in several ways. We study the nine states that adopted caps during the “third reform wave,” from 2002 to 2005. We find that damage caps have no significant impact on Medicare Part A spending, but predict roughly 4% higher Medicare Part B spending. We then revisit the 1980s caps, and find no evidence of a post-adoption drop (or rise) in spending for these caps.
URI
https://www.sciencedirect.com/science/article/abs/pii/S0167629616304106?via%3Dihubhttp://repository.hanyang.ac.kr/handle/20.500.11754/105146
ISSN
0167-6296; 1879-1646
DOI
10.1016/j.jhealeco.2016.11.001
Appears in Collections:
COLLEGE OF POLICY SCIENCE[S](정책과학대학) > POLICY STUDIES(정책학과) > Articles
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