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Cremer, Helmuth
and Lozachmeur, Jean-Marie
(2021)
Coinsurance vs. copayments : reimbursement rules for a monopolistic medical product with competitive health insurers.
TSE Working Paper, n. 21-1223, Toulouse, France
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Abstract
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.
| Item Type: | Monograph (Working Paper) |
|---|---|
| Language: | English |
| Date: | May 2021 |
| Place of Publication: | Toulouse, France |
| Uncontrolled Keywords: | Ex post moral hazard, health insurance competition, copayments, imper-, fect competition |
| JEL Classification: | I11 - Analysis of Health Care Markets I18 - Government Policy; Regulation; Public Health |
| Subjects: | B- ECONOMIE ET FINANCE |
| Divisions: | TSE-R (Toulouse) |
| Institution: | Université Toulouse 1 Capitole |
| Site: | UT1 |
| Date Deposited: | 15 Jun 2021 08:35 |
| Last Modified: | 06 Jan 2025 13:35 |
| OAI Identifier: | oai:tse-fr.eu:125695 |
| URI: | https://publications.ut-capitole.fr/id/eprint/43614 |
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