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October 2, 2008

Out-of-pocket costs slow medical demand

Roger FeldmanA state health department report states that Minnesotans are paying significantly more out-of-pocket for their health care, which has resulted in a lower demand for medical care.

The report also said that such efforts as disease prevention and management may also have contributed to a decreased demand.

Roger Feldman (pictured), a health economist at the University of Minnesota, told the Star Tribune that previous research has shown that high deductibles cause people to spend significantly less.

"Employees are paying more out-of-pocket, and that is cost-shifting but it is also cost-reducing," said Feldman, who was not involved in preparing the Health Department report.

More from the Star Tribune

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