%0 Report
%9 Working Paper
%A Cremer, Helmuth
%A Lozachmeur, Jean-Marie
%B TSE Working Paper
%C Toulouse, France
%D 2021
%F publications:43614
%I Université Toulouse 1 Capitole
%K Ex post moral hazard
%K health insurance competition
%K copayments
%K imper-
%K fect competition
%T Coinsurance vs. copayments : reimbursement rules for a monopolistic medical product with competitive health insurers
%U https://publications.ut-capitole.fr/id/eprint/43614/
%V 21-1223
%X This paper studies a market for a medical product in which there is perfect competition among health insurers, while the good is sold by a monopolist. Individuals di¤er in their severity of illness and there is ex post moral hazard. We consider two regimes : one in which insurers use coinsurance rates (ad valorem reimbursements) and one in which insurers use copayments (specic reimbursements). We show that the induced equilibrium with copayments involves a lower producer price and a higher level of wel- fare for consumers. This results provides strong support for a reference price based reimbursement policy.