Higher co-pays increase hospital stays

PROVIDENCE, R.I., Feb. 1 (UPI) -- Increasing co-payments for outpatient visits, at least for senior citizens, may make care far more expensive, U.S. researchers found.

Brown University researchers said that for many years, health experts said increasing insurance co-payments for routine doctor visits helped control costs. Patients faced with the higher price tag, they theorized, would simply cut back unnecessary visits, saving themselves and insurers money.

However, lead author Dr. Amal Trivedi said Medicare patients faced with higher co-payments cut back on doctor visits, but these patients ultimately required expensive hospital care because their illnesses worsened.

"It is a lose-lose proposition for most health plans," Trivedi said in a statement. "Our study suggests that when you raise co-payments for ambulatory care among elderly beneficiaries, particularly those with low incomes, lower education and chronic disease, they do cut back on their outpatient care but are more likely to need expensive hospital care."

The research team compared 18 Medicare plans with increased co-payments for outpatient care and 18 that offered similar coverage but kept co-payments steady.

Co-payments included a $7.38 increase, on average, to $14.38, and from $12.66 to $22.05 for specialty care.

The study, published in The New England Journal of Medicine, found the higher price for outpatient care led to 13.4 annual days in the hospital per 100 enrollees, while those whose co-payment did not change remain stable.