In this paper, we examine the effect of increases in health care costs and general inflation on optimal insurance policies and waste in a model of imperfect information with costly auditing. We show that in such a setting, individuals will buy more than full insurance. Moreover, as the cost of medical increases, consumers (i.e., patients) reduce their probability of filing injustified claims, at the same time as insurance providers audit with lower probability. As a result, waste associated with costly auditing is reduced. We also show that a general increase in the opportunity cost of illness (reflected through lost wages due to illness) also decreases the likelihood of false claims, of auditing and thus of waste, but not as much as health care costs increase.
Nous étudions dans ce document de recherche l'impact d'une augmentation des coûts des soins de santé et de l'inflation en général sur le contrat optimal d'assurance médicale et sur le gaspillage dans une économie où les agents-consommateurs possèdent une information privilégiée et où le principal-assureur doit encourir des coûts d'audit pour vérifier l'information des agents. Nous montrons dans cet article que les agents seront plus que pleinement assurés au sens où l'indemnité reçue est plus grande que la perte encourue. De plus, au fur et à mesure que le coût des soins de santé augmente, les agents réduisent leur probabilité de demander des soins de santé injustifiés, alors que le principal réduit sa probabilité d'audit. En conséquence, le gaspillage associé aux audits onéreux diminue. Nous montrons finalement qu'une augmentation dans le coût de la vie en général (que nous approximons par une augmentation des pertes de salaire encourues à cause de la maladie) réduit également le gaspillage associé aux audits,0501s dans une mesure moindre qu'une augmentation du coût des soins de santé.
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Find related papers by JEL classification: C82 - Mathematical and Quantitative Methods - - Data Collection and Data Estimation Methodology; Computer Programs - - - Methodology for Collecting, Estimating, and Organizing Macroeconomic Data C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
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Danzon, Patricia M., 2000.
"Liability for medical malpractice,"
Handbook of Health Economics,
in: A. J. Culyer & J. P. Newhouse (ed.), Handbook of Health Economics, edition 1, volume 1, chapter 26, pages 1339-1404
Elsevier.
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Khalil, Fahad & Parigi, Bruno M, 1998.
"Loan Size as a Commitment Device,"
International Economic Review,
Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 39(1), pages 135-50, February.
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