?url_ver=Z39.88-2004&rft_val_fmt=info%3Aofi%2Ffmt%3Akev%3Amtx%3Adc&rft.relation=https%3A%2F%2Fpublications.ut-capitole.fr%2Fid%2Feprint%2F49336%2F&rft.title=Nonlinear+reimbursement+rules+for+preventive+and+curative+medical+care&rft.creator=Cremer%2C+Helmuth&rft.creator=Lozachmeur%2C+Jean-Marie&rft.subject=B-+ECONOMIE+ET+FINANCE&rft.description=We++study++the++design++of++nonlinear++reimbursement++rules++for++expenses++on++secondary++preventive+and+on+therapeutic+care.++With+some+probability+individuals+are+healthy+and+do+not+need+any++therapeutic+health+care.++Otherwise+they+become+ill+and+their+health+status+(the++severity++of++their++disease)++is++realized++and++identifies++their++ex++post++type.+++Preventive+care+is+determined+ex+ante%2C+that+is+before+the+health+status+is+determined+while+curative+care+is+chosen+ex+post.+Insurance++benefits++depend++on++preventive++and++curative++care++in++a++possibly++nonlinear+way%2C+and++marginal++benefits++can++be++positive++or++negative.++++In++the++first++best%2C++achieved+when+health+status+is+ex+post++publicly+observable%2C+insurance+benefits+are+fiat+(lump+sum+payments)+and+do+not+depend+on+expenditures.++When+the+severity+of+the+disease+is+not+observable%2C+so+that+there+is+ex+post+moral+hazard%2C+this+solution+is+not+incentive+compatible+(for+more+healthy+individuals).+The+optimal+insurance+then+implies+benefits+that+increase+with+both++types+of+care.++This+is+because+health+expenditures+reduce+informational+rents+and+they+are+upward+distorted.++This+relaxes+the+incentive+constraint+because+less+healthy+individuals+value+care+more+than+healthy+individuals.+Even+though+preventive+care+is+chosen+ex++ante%2C++when+there+is+no+asymmetry+of+in-+formation%2C+it++does+have+an+impact+on+the+incentive+constraint+and+thus+on+informational+rents.++This+is+due+to+two+concurring+effects.++First%2C+prevention+is+more+effective+for+the+more+severely+ill.++Second%2C+these+individuals+also+have+a+lower+marginal+utility+of+income+so+that+a+given+level+of+expenditure+on+preventive+care+has+less+impact+on+their+utility.&rft.publisher=TSE+Working+Paper&rft.date=2024-04&rft.type=Monograph&rft.type=NonPeerReviewed&rft.format=text&rft.language=en&rft.identifier=https%3A%2F%2Fpublications.ut-capitole.fr%2Fid%2Feprint%2F49336%2F1%2Fwp_tse_1527.pdf&rft.identifier=++Cremer%2C+Helmuth+%3Chttps%3A%2F%2Fwww.idref.fr%2F058485376%3E+and+Lozachmeur%2C+Jean-Marie+%3Chttps%3A%2F%2Fwww.idref.fr%2F179825933%3E++(2024)+Nonlinear+reimbursement+rules+for+preventive+and+curative+medical+care.++TSE+Working+Paper%2C+n.+24-1527%2C+Toulouse+++++&rft.relation=http%3A%2F%2Ftse-fr.eu%2Fpub%2F129305&rft.language=en