Does it Matter Who Pays for Auto Injuries?

26 Pages Posted: 28 May 2020

See all articles by Paul S. Heaton

Paul S. Heaton

University of Pennsylvania Carey Law School

Eric Helland

Claremont McKenna College - Robert Day School of Economics and Finance; RAND

Date Written: December 2019

Abstract

In many states, auto insurers rather than health insurers pay for a substantial fraction of the medical care following auto crashes. We examine whether payer identity affects the care received by auto injury patients. A 2003 Colorado reform shifted a large fraction of auto injury patients from coverage through auto insurers to the traditional health insurance system. Despite negligible changes in auto injury characteristics during this period, treatment supply increased following the reform. Procedure use rose by 5–10 percent and billed charges rose by 5 percent. These changes reflect an increase in resources devoted to treatment, yet do not improve mortality.

Suggested Citation

Heaton, Paul S. and Helland, Eric A., Does it Matter Who Pays for Auto Injuries? (December 2019). Journal of Risk and Insurance, Vol. 86, Issue 4, pp. 947-972, 2019, Available at SSRN: https://ssrn.com/abstract=3610295 or http://dx.doi.org/10.1111/jori.12245

Paul S. Heaton (Contact Author)

University of Pennsylvania Carey Law School ( email )

3501 Sansom Street
Philadelphia, PA 19104
United States

HOME PAGE: http://https://www.law.upenn.edu/cf/faculty/pheaton/

Eric A. Helland

Claremont McKenna College - Robert Day School of Economics and Finance ( email )

500 E. Ninth St.
Claremont, CA 91711-6420
United States
909-607-7275 (Phone)
909-621-8243 (Fax)

RAND ( email )

1776 Main Street
Santa Monica, CA
United States

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