Deductibles in Health Insurance: Pay or Pain?
We study a health-insurance market where individuals are offered coverage against both medical expenditures and losses in income. Individuals vary in their level of innate ability. If there is private information about the probability of illness and an individual’s innate ability is suffciently low, we find that competitive insurance contracts yield screening partly in the form of co-payment, i.e., a deductible in pay, and partly in the form of reduced medical treatment, i.e., a deductible in pain.
Asheim, Geir B., Tore Nilssen and Anne Wenche Emblem
Nummer i serie: 13
health insurance, adverse selection, deductibles
Prosjekt:4101 - Økonomi og helse
Research Council of Norway through HERO - the Health Economics Research Programme at the University of Oslo.