The Impact of Prescription Drug Insurance on Healthcare Utilization

Abstract

This is an empirical paper examining the impact of having public drug insurance on healthcare utilization using the Canadian Community Health Survey for 2005 and 2013. This paper quantifies this impact by exploiting the exogenous change in prescription insurance coverage that occurs once an individual turns 65, which is a novel approach. My findings suggest that individuals between the ages of 60 and 70 may have adequate insurance coverage from other sources (i.e., employers) and therefore do not change their behavior as a result of receiving public prescription drug insurance at 65.