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Organizing the Health Insurance Market

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Author Info
Diamond, Peter

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Abstract

This paper presents a new approach to organizing universal health insurance. First, the government divides the entire population into many large groups. Then, the government creates a federal health insurance system (HealthFed), modeled on the Federal Reserve System, to fill the role now played by the benefits office of a large firm. The HealthFed would create a short menu of alternatives, solicit bids for insuring the entire group, and price alternatives. There would be redistribution between groups and pricing of alternatives to reflect optimal social insurance principles. There would be no connection between health insurance and employment. Copyright 1992 by The Econometric Society.

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Publisher Info
Article provided by Econometric Society in its journal Econometrica.

Volume (Year): 60 (1992)
Issue (Month): 6 (November)
Pages: 1233-54
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Handle: RePEc:ecm:emetrp:v:60:y:1992:i:6:p:1233-54

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  1. Igal Hendel & Alessandro Lizzeri, 2000. "The Role of Commitment in Dynamic Contracts: Evidence from Life Insurance," NBER Working Papers 7470, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
    Other versions:
  2. Boadway, Robin & Leite-Monteiro, Manuel & Marchand, Maurice G. & Pestieau, Pierre, 2004. "Social Insurance and Redistribution with Moral Hazard and Adverse Selection," CEPR Discussion Papers 4253, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
    Other versions:
  3. David Bardey & Ramón Castaño, 2007. "La regulación de tarifas en el sector de la salud en Colombia," Revista de Economía Institucional, Universidad Externado de Colombia - Facultad de Economía, vol. 9(17), pages 347-357, July-Dece. [Downloadable!]
  4. Keith J. Crocker & John R. Moran, 2002. "Contracting with Limited Commitment: Evidence from Employment-Based Health Insurance Contracts," Center for Policy Research Working Papers 45, Center for Policy Research, Maxwell School, Syracuse University. [Downloadable!]
  5. Sara De La Rica & Thomas Lemieux, 1993. "Does Public Health Insurance Reduce Labor Market Flexibility or Encourage the Underground Economy? Evidence from Spain and the United States," NBER Working Papers 4402, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  6. Dan A. Black, 1996. "Family Health Benefits and Worker Turnover," Labor and Demography 9604001, EconWPA. [Downloadable!]
  7. Hans van Kippersluis & Tom van Ourti & Owen O'Donnell & Eddy van Doorslaer, 2008. "Health and Income across the Life Cycle and Generations in Europe," Tinbergen Institute Discussion Papers 08-009/3, Tinbergen Institute. [Downloadable!]
  8. David J. Vanness, 2003. "A structural econometric model of family valuation and choice of employer-sponsored health insurance in the United States," Health Economics, John Wiley & Sons, Ltd., vol. 12(9), pages 771-790. [Downloadable!]
  9. Peter Diamond, 1999. "Administrative Costs and Equilibrium Charges with Individual Accounts," NBER Working Papers 7050, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  10. Wolfgang Buchholz & Birgit Edener & Markus Grabka & Klaus-Dirk Henke & Monika Huber & Hermann Ribhegge & Andreas Ryll & Hans-Jürgen Wagener & Gert G. Wagner, 2001. "Wettbewerb aller Krankenversicherungen kann Qualität verbessern und Kosten des Gesundheitswesens senken," Discussion Papers of DIW Berlin 247, DIW Berlin, German Institute for Economic Research. [Downloadable!]
  11. Belli, Paolo, 2001. "How adverse selection affects the health insurance market," Policy Research Working Paper Series 2574, The World Bank. [Downloadable!]
  12. Matthew Kahn, 1995. "The Cost of Diabetes," HEW 9507001, EconWPA. [Downloadable!]
  13. Peter Diamond, 1993. "Privatization of Social Security: Lessons from Chile," NBER Working Papers 4510, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  14. Hanming Fang & Alessandro Gavazza, 2007. "Dynamic Inefficiencies in Employment-Based Health Insurance System Theory and Evidence," NBER Working Papers 13371, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  15. Valdes-Prieto, Salvador & DEC, 1994. "Earnings-related mandatory pensions : concepts for design," Policy Research Working Paper Series 1296, The World Bank. [Downloadable!]
  16. Robin Boadway & Manuel Leite-Monteiro & Maurice Marchand & Pierre Pestieau, 2002. "Social Insurance and Redistribution," Working Papers 1004, Queen's University, Department of Economics. [Downloadable!]
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