The effect of out-of-pocket costs and financial rewards in a discrete choice experiment: An application to lifestyle programs

J.O.P. Wanders, J. Veldwijk, G.A. De Wit, H.E. Hart, P.F. Van Gils, M.S. Lambooij

Research output: Contribution to JournalArticleAcademicpeer-review

Abstract

© 2014 Wanders et al.; licensee BioMed Central Ltd.Background: Both out-of-pocket costs and financial rewards can be used to influence health related behavior. However, it is unclear which of these two has a larger effect on health related behavior. The aim of this study was to explore the possible difference in effect size between out-of-pocket costs and financial rewards on the willingness of diabetes mellitus type 2 (DM2) patients to participate in a lifestyle program. Methods. A discrete choice experiment (DCE) questionnaire was sent to 767 DM2 patients in a geographically defined area (De Leidsche Rijn, Utrecht) in The Netherlands and completed by 206 of them. The questionnaire comprised of 18 choice tasks of which 9 contained a financial reward for lifestyle program completion, while the other 9 included out-of-pocket costs for program participation. In a second version of the questionnaire, the order of out-of-pocket cost and financial reward choice tasks was counterbalanced to reduce bias with respect to the position (first or second) of the two types of choice tasks. Panel-mixed-multinomial-logit models were used for data analysis. Results: Increasing out-of-pocket costs were associated with a decreasing willingness to participate in a lifestyle program and, contrary to our expectations, increasing financial rewards were also associated with a decreasing willingness to participate in a lifestyle program. In addition, this willingness to participate changed to the same extent for both increasing out-of-pocket costs and increasing financial rewards. Conclusions: As expected, increasing out-of-pocket costs may prevent people from deciding to participate in a lifestyle program. However, offering a financial reward to persuade people to participate in a lifestyle program, may result in decreasing willingness to participate in a lifestyle program as well.
Original languageEnglish
Article number870
JournalBMC Public Health
Volume14
Issue number1
DOIs
Publication statusPublished - 23 Aug 2014
Externally publishedYes

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