Easing the Pain: Healthcare Costs in California

Poster Number

15C

Lead Author Major

Political Science/ Economics

Lead Author Status

5th year Senior

Format

Poster Presentation

Faculty Mentor Name

Jeffrey Becker

Faculty Mentor Department

Political Science

Abstract/Artist Statement

Healthcare has always been a highly salient issue, and this has only become amplified in the current political climate. There have been numerous studies at the national level arguing for policies which result in reductions in licensure requirements, reductions in state regulations regarding healthcare providers, and state investment into healthcare. However, similar studies are less common at the state level, and this is where regulations directly impact the cost of healthcare. Furthermore, the number and nature of healthcare providers are largely impacted by state policy. This research seeks to focus on both national markets, and state policy in order to explain California's healthcare costs between the years 1980 and 2010. Using time series data this study analyzes the impact of supply and demand on California's healthcare market. My study will examine California's healthcare costs to interpret the impact of state healthcare policy on state healthcare costs. Both literature and economic theory point to a shortage in the supply of doctors resulting in increased medical costs. To test this, my research examines whether barriers to entry in the form of licensing requirements and state regulations on healthcare providers also increase these costs. This research attempts to operationalize the influences of licensing on the healthcare market in California. To this end the preliminary model looks at the relationship between the number of active physicians nationally, state healthcare regulations, average salaries of physicians, and the number of healthcare providers, and healthcare costs (controlled for inflation) in California. Preliminary findings as well as literature and theory indicate that these variables contribute to higher healthcare costs. This research can be used to as a template for similar studies using different cases, as well as finding key ways in which policy can be used to reduce medical costs.

Location

DeRosa University Center, Ballroom

Start Date

29-4-2017 10:00 AM

End Date

29-4-2017 12:00 PM

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Apr 29th, 10:00 AM Apr 29th, 12:00 PM

Easing the Pain: Healthcare Costs in California

DeRosa University Center, Ballroom

Healthcare has always been a highly salient issue, and this has only become amplified in the current political climate. There have been numerous studies at the national level arguing for policies which result in reductions in licensure requirements, reductions in state regulations regarding healthcare providers, and state investment into healthcare. However, similar studies are less common at the state level, and this is where regulations directly impact the cost of healthcare. Furthermore, the number and nature of healthcare providers are largely impacted by state policy. This research seeks to focus on both national markets, and state policy in order to explain California's healthcare costs between the years 1980 and 2010. Using time series data this study analyzes the impact of supply and demand on California's healthcare market. My study will examine California's healthcare costs to interpret the impact of state healthcare policy on state healthcare costs. Both literature and economic theory point to a shortage in the supply of doctors resulting in increased medical costs. To test this, my research examines whether barriers to entry in the form of licensing requirements and state regulations on healthcare providers also increase these costs. This research attempts to operationalize the influences of licensing on the healthcare market in California. To this end the preliminary model looks at the relationship between the number of active physicians nationally, state healthcare regulations, average salaries of physicians, and the number of healthcare providers, and healthcare costs (controlled for inflation) in California. Preliminary findings as well as literature and theory indicate that these variables contribute to higher healthcare costs. This research can be used to as a template for similar studies using different cases, as well as finding key ways in which policy can be used to reduce medical costs.