Prices vs. quantities in health insurance reimbursement

Barigozzi, Francesca (2003) Prices vs. quantities in health insurance reimbursement. p. 24. DOI 10.6092/unibo/amsacta/1505.
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Abstract

I compare in-kind reimbursement (which fixes treatment quantities) and reimbursement insurance (which fixes treatment prices) as demandside, cost-containment measures. In the model, illness has a negative impact on labor productivity and public insurance is financed through labor income taxation. Consumers are heterogeneous with respect to intensity of preferences for treatment which is their private information. The social planner may be constrained to adopt uniform (pooling) allocations or may be free to choose discriminating (self selecting) allocations in the reimbursement plan. Analyzing pooling allocations I show that reimbursement insurance dominates in-kind reimbursement from a social welfare point of view. While considering self-selecting allocations I show that the two reimbursement methods are equivalent.

Abstract
Document type
Monograph (Working Paper)
Creators
CreatorsAffiliationORCID
Barigozzi, Francesca
Keywords
public health insurance, in-kind transfers, reimbursement insurance, adverse selection
Subjects
DOI
Deposit date
15 Feb 2006
Last modified
17 Feb 2016 14:31
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