Alternative health insurance schemes: a welfare comparison.

Abstract:

:In this paper, we present a simple model of health insurance with asymmetric information, where we compare two alternative ways of organizing the insurance market. Either as a competitive insurance market, where some risks remain uninsured, or as a compulsory scheme, where however, the level of reimbursement of loss is to be determined by majority decision. In a simple welfare comparison, the compulsory scheme may in certain environments yield a solution which is inferior to that obtained in the market. We further consider the situation where the compulsory scheme may be supplemented by voluntary competitive insurance; this situation turns out to be at least as good as either of the alternatives.

journal_name

J Health Econ

authors

Hansen BO,Keiding H

doi

10.1016/s0167-6296(02)00062-0

subject

Has Abstract

pub_date

2002-09-01 00:00:00

pages

739-56

issue

5

eissn

0167-6296

issn

1879-1646

pii

S0167-6296(02)00062-0

journal_volume

21

pub_type

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