The Effect of Copayments on Children's and Adolescents' Demand for Medical Care

We use a policy change in Sweden to estimate the effect of copayments on the demand
for children's and adolescents' usage of medical care. The policy change implied that
visits to medical care became free of charge for all individuals below the age of 20.
We examine whether the response varies by socioeconomic background or preexisting
health status, and whether the mix of health problems that individuals seek care for
is affected by the policy change. We find that individuals saw a doctor ten percent
more often when visits became free of charge, but there is no effect on other types
of visits (such as nurse visits). Our results indicate that adverse family background,
low income, a large number of siblings and worse health status increases the response
to fees, and that individuals seek more care for minor health problems when no fee is
charged.