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Are differential co-payment rates appropriate in the health sector ?

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Author Info
EECKHOUDT, Louis
MARCHAND, Maurice
PESTIEAU, Pierre
PIASER, Gwenael

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Abstract

In this paper we discuss the interest of applying differential co-payment rates across alternative medical treatments. Two treatment strategies are considered: a "long term strategy" in which patients apply preventive measures before knowing if they have the desease and an "emergency strategy" where patients are treated on contraction of the disease. We show that the second approach should be more generously subsidized by the regulator.

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Paper provided by Université catholique de Louvain, Center for Operations Research and Econometrics (CORE) in its series CORE Discussion Papers with number 2004070.

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Date of creation: 00 Oct 2004
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Handle: RePEc:cor:louvco:2004070

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  1. Breyer, Friedrich, 1982. "Rational purchase of medical care and differential insurance coverage for diagnostic services," Journal of Health Economics, Elsevier, vol. 1(2), pages 147-156, August. [Downloadable!] (restricted)
  2. Byrne, Margaret M. & Thompson, Peter, 2001. "Screening and preventable illness," Journal of Health Economics, Elsevier, vol. 20(6), pages 1077-1088, November. [Downloadable!] (restricted)
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This page was last updated on 2009-10-30.

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