Plan 5.90 5. Below is Table 4 from our second lecture on RAND HIE. TABLE 4 VARIOUS MEASURES OF PREDICTED ANNUAL USE OF MEDICAL SERVICES, BY INCOME GROUP Significance Tests Income I on Contrast of: Lowest Middle Highest Middle Highest Third Third Third vs. Lowest vs. Lowest Mean Mean Mean Thirdsa Thirds Likelihood of Any Use (Percent) Free 82.8 87.4 90.1 4.91 Family Pay 25 Percent 71.8 80.1 84,8 5.45 6.28 50 Percent 64.7 76.2 82.3 4.35 4.86 95 Percent 61.7 68.9 73.8 3.96 4.64 Individual Deductible 65.3 6.09 7.09 Likelihood of One or More Admissions (Percent) 10.63 10.14 10.35 -0.91 -0.35 Family Pay 25 Percent 10.03 8.44 7.97 -2.95 -2.75 50 Percent 9.08 8.06 7.77 -1.78 -1.66 95 Percent 8.77 7.38 7.07 - 2.79 -2.46 Individual Deductible 9.26 9.44 9.88 0.31 0.68 Expenses (1984) Free 788 736 809 -1.78 0.53 Family Pay 25 Percent 680 588 623 - 3.17 -1.47 50 Percent 610 -1.89 -0.49 95 Percent 581 494 527 -3.09 -1.41 Individual Deductible 609 594 670 -0.57 1.38 73.9 79.1 Free 550 590 Assume average income in the bottom, middle, and top income terciles make $15,000, $50,000, and $100,000, respectively. Focusing on expenses as the outcome (among the people randomized to the "Free" plan), what is the income elasticity of demand for healthcare using the midpoint method by comparing i) Middle vs Lowest terciles ii) Top vs Lowest terciles Plan 5.90 5. Below is Table 4 from our second lecture on RAND HIE. TABLE 4 VARIOUS MEASURES OF PREDICTED ANNUAL USE OF MEDICAL SERVICES, BY INCOME GROUP Significance Tests Income I on Contrast of: Lowest Middle Highest Middle Highest Third Third Third vs. Lowest vs. Lowest Mean Mean Mean Thirdsa Thirds Likelihood of Any Use (Percent) Free 82.8 87.4 90.1 4.91 Family Pay 25 Percent 71.8 80.1 84,8 5.45 6.28 50 Percent 64.7 76.2 82.3 4.35 4.86 95 Percent 61.7 68.9 73.8 3.96 4.64 Individual Deductible 65.3 6.09 7.09 Likelihood of One or More Admissions (Percent) 10.63 10.14 10.35 -0.91 -0.35 Family Pay 25 Percent 10.03 8.44 7.97 -2.95 -2.75 50 Percent 9.08 8.06 7.77 -1.78 -1.66 95 Percent 8.77 7.38 7.07 - 2.79 -2.46 Individual Deductible 9.26 9.44 9.88 0.31 0.68 Expenses (1984) Free 788 736 809 -1.78 0.53 Family Pay 25 Percent 680 588 623 - 3.17 -1.47 50 Percent 610 -1.89 -0.49 95 Percent 581 494 527 -3.09 -1.41 Individual Deductible 609 594 670 -0.57 1.38 73.9 79.1 Free 550 590 Assume average income in the bottom, middle, and top income terciles make $15,000, $50,000, and $100,000, respectively. Focusing on expenses as the outcome (among the people randomized to the "Free" plan), what is the income elasticity of demand for healthcare using the midpoint method by comparing i) Middle vs Lowest terciles ii) Top vs Lowest terciles
