Revisiting Offsets of Psychotherapy Coverage

Arbeitspapier

Mental illness is a leading cause of disability worldwide with vast costs to society. Yet, insurance coverage for effective treatments remains limited. This paper revisits the Offset Hypothesis, which claims insurance coverage for psychotherapy is self-financing through reductions in the use of other health care services and improved labor market outcomes. I study a 2008 reform of the Danish public health care system that introduced 60 percent coverage of the cost of psychotherapy for depression and anxiety patients below age 38. Using Regression Discontinuity and Difference-in-Difference designs, I show that psychotherapy coverage reduces the use of other mental health services, physical health care and suicide attempts, but does not impact employment, sick leave or disability pension receipt. Still, the reduction in health care costs is sufficiently large to finance the policy. This suggests mental health coverage is both welfare improving and cost reducing.

Angaben zum Objekt

• Sprache: Englisch

Verweise und Beziehungen

• Erschienen in: Series: CEBI Working Paper Series ; No. 05/21

Klassifikation und Themen

• Klassifikation: Wirtschaft ; Health Insurance, Public and Private ; Health: Government Policy; Regulation; Public Health ; Welfare, Well-Being, and Poverty: Government Programs; Provision and Effects of Welfare Programs ; National Government Expenditures and Health ; Social Security and Public Pensions
• Thema: mental health ; health insurance ; health care ; offset ; labor market

Beteiligte, Orts- und Zeitangaben

• Ereignis: Geistige Schöpfung
• (wer): Serena, Benjamin Ly
• Ereignis: Veröffentlichung
• (wer): University of Copenhagen, Department of Economics, Center for Economic Behavior and Inequality (CEBI)
• (wo): Copenhagen
• (wann): 2021

Weitere Informationen

• Handle: http://hdl.handle.net/10419/258949
• Letzte Aktualisierung: 10.03.2025, 11:41 MEZ