Prices vs. Quantities in Health Insurance Reimbursement

Barigozzi, Francesca (2003) Prices vs. Quantities in Health Insurance Reimbursement. Bologna: Dipartimento di Scienze economiche DSE, p. 22. DOI 10.6092/unibo/amsacta/4795. In: Quaderni - Working Paper DSE (499). ISSN 2282-6483.
Full text available as:
[thumbnail of 499.pdf]
Preview
Text(pdf)
License: Creative Commons Attribution

Download (424kB) | Preview

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
ISSN
2282-6483
DOI
Deposit date
09 Mar 2016 15:18
Last modified
09 Mar 2016 15:18
URI

Other metadata

Downloads

Downloads

Staff only: View the document

^