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To wait or to pay for medical treatment? Restraining ex-post moral hazard in health insurance

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Author Info
Felder, Stefan
Abstract

We explore the hierarchy of two instruments, waiting time and coinsurance for medical treatment, for optimally solving the tradeoff between the economic gains from risk sharing and the losses from moral hazard. We show that the optimal waiting time is zero, given that the coinsurance rate is optimally set.

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File URL: http://www.sciencedirect.com/science/article/B6V8K-4SSND1M-2/2/002426db47c74730fb07c88ae5ef6137
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Publisher Info
Article provided by Elsevier in its journal Journal of Health Economics.

Volume (Year): 27 (2008)
Issue (Month): 6 (December)
Pages: 1418-1422
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Handle: RePEc:eee:jhecon:v:27:y:2008:i:6:p:1418-1422

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Web page: http://www.elsevier.com/locate/inca/505560

For technical questions regarding this item, or to correct its listing, contact: (Heidi Boesdal).

Related research
Keywords: Waiting time Coinsurance Moral hazard Optimal insurance contracts;

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This page was last updated on 2009-12-3.

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