Wu, Yaping, Bardey, David
, Chen, Yijuan and Li, Sanxi
(2021)
Health care insurance payment policy when the provider and patient May Collude.
Health Economics, vol. 30 (n° 3).
pp. 525-543.
This is the latest version of this item.
Abstract
This article explores a three‐party contracting problem when the patient and the provider possess private information that is unobservable to the insurer. We show that for an insurance mechanism to be collusion‐proof, it suffices for the insurer to rely on the incentive for one side of the patient‐provider coalition. If the risk premium for the patient is smaller than the provider's informational rent, placing the incentive on the patient generates a lower social cost than placing the incentive on the provider. We show that if the provider's effort is highly valued by the patient, the insurer should rely on the patient's incentive to implement a collusion‐proof second‐best insurance. Interestingly, an altruistic provider may lead to a higher social cost than a self‐interested provider. However, even if the insurer does not know the degree of provider altruism, it may still achieve the second‐best outcome by assuming that the provider is self‐interested. The model can be further extended to allow for different objective of the insurer, provider's informational advantage over patient, and auditing.
Item Type: | Article |
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Language: | English |
Date: | March 2021 |
Refereed: | Yes |
Subjects: | B- ECONOMIE ET FINANCE |
Divisions: | TSE-R (Toulouse) |
Site: | UT1 |
Date Deposited: | 02 Jul 2021 09:54 |
Last Modified: | 13 Jul 2022 12:40 |
OAI Identifier: | oai:tse-fr.eu:125281 |
URI: | https://publications.ut-capitole.fr/id/eprint/42465 |
Available Versions of this Item
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Health Care Insurance Payment Policy when the Physician and Patient May Collude. (deposited 21 Sep 2015 13:08)
- Health care insurance payment policy when the provider and patient May Collude. (deposited 02 Jul 2021 09:54) [Currently Displayed]