Journal ArticleDOI
The Welfare Loss of Excess Health Insurance
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TLDR
The first part of the paper develops and estimates a structural equation for the demand for health care and then examines the dynamic interaction between the purchase of insurance and the demand and supply for health Care.Abstract:
American families are in general overinsured against health expenses. If insurance coverage were reduced, the utility loss from increased risk would be more than outweighted by the gain due to lower prices and the reduced purchase of excess care. The first part of the paper develops and estimates a structural equation for the demand for health care and then examines the dynamic interaction between the purchase of insurance and the demand and supply for health care. The second part estimates the welfare gains that would result from decreasing insurance by raising the average coinsurance rate from 0.33 to 0.50 and 0.67 percent. The most likely values imply net gains in excess of $4 billion.read more
Citations
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Health insurance and the demand for medical care: evidence from a randomized experiment.
Willard G. Manning,Joseph P. Newhouse,Naihua Duan,Emmett B. Keeler,Arleen Leibowitz,M S Marquis +5 more
TL;DR: This work estimates how cost sharing, the portion of the bill the patient pays, affects the demand for medical services and rejects the hypothesis that less favorable coverage of outpatient services increases total expenditure.
Journal ArticleDOI
The demand for deductibles in private health insurance: A probit model with sample selection
TL;DR: The results give an indication of the degree of adverse selection that may take place if health insurance policies are offered with the option to take a deductible in exchange of a premium reduction.
Posted Content
The incidence of mandated maternity benefits.
TL;DR: It is found that several state and federal mandates which stipulated that childbirth be covered comprehensively in health insurance plans, raising the relative cost of insuring women of childbearing age, have little effect on total labor input for that group.
Book
The Economics of Health and Health Care
TL;DR: This book discusses the production, cost, and technology of health care, as well as the role of government intervention in health care markets and other topics.
Journal ArticleDOI
A Microeconometric Model of the Demand for Health Care and Health Insurance in Australia
TL;DR: A model for interdependent demand for health insurance and health care under uncertainty is developed to throw light on the issue of insurance-induced distortions in thedemand for health care services.
References
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Journal ArticleDOI
Risk Aversion in the Small and in the Large
TL;DR: In this article, a measure of risk aversion in the small, the risk premium or insurance premium for an arbitrary risk, and a natural concept of decreasing risk aversion are discussed and related to one another.
Journal Article
Uncertainty and the Welfare Economics of Medical Care
TL;DR: In this article, the authors focus on the way in which the operation of the medical-care industry and the efficacy with which it satisfies the needs of society differ from a norm, and the most obvious distinguishing characteristics of an individual's demand for medical services is that it is not steady in origin as, for example, for food or clothing but is irregular and unpredictable.
Book ChapterDOI
The Role of Securities in the Optimal Allocation of Risk-bearing
TL;DR: In this article, an extension of the theory of the optimal allocation of resources under conditions of certainty is presented, and an extension to conditions of subjective uncertainty is considered, where the authors consider an optimal allocation under subjective uncertainty.
Posted Content
Market Insurance, Self-Insurance, and Self-Protection
TL;DR: In this paper, the authors developed a theory of demand for insurance that emphasizes the interaction between market insurance, self-insurance, and self-protection, and analyzed the effects of changes in prices, income, and other variables on the demand for these alternative forms of insurance.
Book ChapterDOI
Market Insurance, Self-Insurance, and Self-Protection
TL;DR: In this article, the authors develop a theory of demand for insurance that emphasizes the interaction between market insurance, self-insurance, and self-protection, and show that under certain conditions the latter may lead to a reduction in the probabilities of hazardous events.