Welfare Analysis of Changes in Health Coinsurance Rates
This report develops a general equilibrium theory of demand for and supply of medical care when medical care purchases are insured by a plan with a coinsurance rate [r]. The report then investigates welfare effects of a change in [r]. Random levels of health are considered, and utility is allowed to vary with the state of health. If supply is totally inelastic, decreases in coinsurance only transfer income to suppliers of medical care with no changes in welfare or efficiency. For other supply elasticities, welfare effects depend upon both supply and demand elasticities and upon the health status-marginal utility of income covariance. It is also shown that welfare unambiguously increases with the introduction of some insurance coverage, but the optimal level of coverage cannot be determined theoretically.
- Format:
- Paperback, 39 Pages
- Year:
- 1973
- List Price:
- $20.00
- Price:
- $16.00 Special 20% Web Discount
- Full Document (pdf format)
Use Adobe Acrobat Reader version 7.0 or higher for the best experience.
Document Details
- Copyright: RAND Corporation
- Availability: Available
- Format: Paperback
- Pages: 39
- List Price: $20.00
- Price: $16.00
- Document Number: R-1281-OEO
- Year: 1973
- Series: Reports
This report is part of the RAND Corporation report series. The report was a product of the RAND Corporation from 1948 to 1993 that represented the principal publication documenting and transmitting RAND's major research findings and final research.
Permission is given to duplicate this electronic document for personal use only, as long as it is unaltered and complete. Copies may not be duplicated for commercial purposes. Unauthorized posting of RAND PDFs to a non-RAND Web site is prohibited. RAND PDFs are protected under copyright law. For information on reprint and linking permissions, please visit the RAND Permissions page.
The RAND Corporation is a nonprofit institution that helps improve policy and decisionmaking through research and analysis. RAND's publications do not necessarily reflect the opinions of its research clients and sponsors.
RAND® is a registered trademark. Copyright © 1994-2012 RAND Corporation.