| The main purpose of this research is to understand the determinants of physician visits by the elderly--care rendered to the elderly by all physicians. The theoretical model of this research is based on the Grossman's human capital model of the demand for medical care. Multivariate techniques have been employed to examine two measures of medical care utilization for the elderly aged 65 and over.;The major findings from this research indicate that variations in the income level affect significantly only the elderly's decision to use any medical care in the physician office. Income level is not a significant determinant in the number of visits to the physician's office, probably because of Medicare and Medicaid insurance. The Medigap insurance coverage has a significant effect on the probability of contacting a physician. The price elasticity of the elderly at the mean is slightly higher than those of the rest of age groups. Further, the elderly aged 65 and over are highly price sensitive to the medical care utilization in the physician's office (the number of visits) compared with prior researches. The health status measures of the elderly have significant effects on the medical care utilization. The hypothesis of differential usage of medical care by sex is only confirmed in the probability of contacting a physician. The elderly women have a higher probability of contacting a physician than the elderly male. The hypothesis is rejected in the number of visits equation. This research confirms that there are structural differences in the demand for physician visits among three age groups, the elderly aged 65 and over, adults between the ages 40 and 64, and adults between the ages 18 and 39.;On the basis of these results, especially considering lower income level and higher price elasticity, I recommend that recent debates on the Congress to overhaul the nation's Medicare and Medicaid should consider not only the new cost-effective public health care system but also its effect on the low-income elderly. The new system should not preclude the health insurance protection for the low-income elderly that is guaranteed by the current welfare system. |
