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Consumer Resistance Against Regulation: The Case of Health Care

Author

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  • Peter Zweifel

    ()

  • Harry Telser

    ()

  • Stephan Vaterlaus

    ()

Abstract

Regulation fostering Managed Care alternatives in health insurance is spreading. This work reports on an experiment designed to measure the amounts of compensation asked by the Swiss population (in terms of reduced premiums) for Managed-Care type restrictions in the provision of health care. It finds that restrictions on the freedom of physician choice would require an average compensation of more than one-third of the premium, while generic substitution even meets with a small willingness to pay. Marked preference heterogeneity is an argument against regulation imposing uniformity of contract in Swiss social health insurance. Copyright Springer Science+Business Media, Inc. 2006

Suggested Citation

  • Peter Zweifel & Harry Telser & Stephan Vaterlaus, 2006. "Consumer Resistance Against Regulation: The Case of Health Care," Journal of Regulatory Economics, Springer, vol. 29(3), pages 319-332, May.
  • Handle: RePEc:kap:regeco:v:29:y:2006:i:3:p:319-332
    DOI: 10.1007/s11149-006-7402-8
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    File URL: http://hdl.handle.net/10.1007/s11149-006-7402-8
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    References listed on IDEAS

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    1. James Andreoni, 1995. "Warm-Glow versus Cold-Prickle: The Effects of Positive and Negative Framing on Cooperation in Experiments," The Quarterly Journal of Economics, Oxford University Press, vol. 110(1), pages 1-21.
    2. Mandy Ryan & Jenny Hughes, 1997. "Using Conjoint Analysis to Assess Women's Preferences for Miscarriage Management," Health Economics, John Wiley & Sons, Ltd., vol. 6(3), pages 261-273.
    3. Louviere,Jordan J. & Hensher,David A. & Swait,Joffre D., 2000. "Stated Choice Methods," Cambridge Books, Cambridge University Press, number 9780521788304.
    4. David M. Cutler, 2002. "Equality, Efficiency, and Market Fundamentals: The Dynamics of International Medical-Care Reform," Journal of Economic Literature, American Economic Association, vol. 40(3), pages 881-906, September.
    5. Hanemann, W. Michael, 1983. "Marginal welfare measures for discrete choice models," Economics Letters, Elsevier, vol. 13(2-3), pages 129-136.
    6. Lehmann, Hansjorg & Zweifel, Peter, 2004. "Innovation and risk selection in deregulated social health insurance," Journal of Health Economics, Elsevier, vol. 23(5), pages 997-1012, September.
    7. Kelvin J. Lancaster, 1966. "A New Approach to Consumer Theory," Journal of Political Economy, University of Chicago Press, vol. 74, pages 132-132.
    8. Harry Telser & Peter Zweifel, 2002. "Measuring willingness-to-pay for risk reduction: an application of conjoint analysis," Health Economics, John Wiley & Sons, Ltd., vol. 11(2), pages 129-139.
    9. Cutler, David, 2002. "Equality, Efficiency, and Market Fundamentals: The Dynamics of International Medical Care Reform," Scholarly Articles 2640584, Harvard University Department of Economics.
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    Citations

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    Cited by:

    1. Eugster, Patrick & Sennhauser, Michèle & Zweifel, Peter, 2010. "Capping risk adjustment?," Journal of Health Economics, Elsevier, vol. 29(4), pages 499-507, July.
    2. Andriy Danyliv & Milena Pavlova & Irena Gryga & Wim Groot, 2015. "Preferences for physician services in Ukraine: a discrete choice experiment," International Journal of Health Planning and Management, Wiley Blackwell, vol. 30(4), pages 346-365, October.
    3. Peter Zweifel, 2014. "Does Privatisation Contribute to the Performance of a Health Care System?," Economic Affairs, Wiley Blackwell, vol. 34(2), pages 171-178, June.
    4. Eling, Martin & Gatzert, Nadine & Schmeiser, Hato, 2009. "Minimum standards for investment performance: A new perspective on non-life insurer solvency," Insurance: Mathematics and Economics, Elsevier, vol. 45(1), pages 113-122, August.
    5. Harry Telser & Karolin Becker & Peter Zweifel, 2008. "Validity and Reliability of Willingness-to-Pay Estimates," The Patient: Patient-Centered Outcomes Research, Springer;Johns Hopkins Bloomberg School of Public Health, vol. 1(4), pages 283-298, October.
    6. Peter Zweifel, 2013. "Managed Care: Prescription for Failure? Lessons from Switzerland," ifo DICE Report, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 11(1), pages 27-31, 04.
    7. Karolin Becker & Peter Zweifel, 2008. "Age and Choice in Health Insurance," The Patient: Patient-Centered Outcomes Research, Springer;Johns Hopkins Bloomberg School of Public Health, vol. 1(1), pages 27-40, January.
    8. Peter Zweifel, 2016. "A Novel way to Compare Health Care Systems and to Assess their Potential Competitiveness," Economic Affairs, Wiley Blackwell, vol. 36(2), pages 155-167, June.
    9. Johannes G. Jaspersen, 2016. "Hypothetical Surveys And Experimental Studies Of Insurance Demand: A Review," Journal of Risk & Insurance, The American Risk and Insurance Association, vol. 83(1), pages 217-255, January.
    10. repec:ces:ifodic:v:11:y:2013:i:1:p:19078507 is not listed on IDEAS
    11. Maurus Rischatsch & Peter Zweifel, 2013. "What do physicians dislike about managed care? Evidence from a choice experiment," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 14(4), pages 601-613, August.
    12. Boone, J. & Douven, R.C.M.H. & Droge, C. & Mosca, I., 2010. "Health Insurance Competition : The Effect of Group Contracts," Discussion Paper 2010-55, Tilburg University, Center for Economic Research.
    13. Rachel Kreier & Bhaswati Sengupta, 2015. "Income, Health, and the Value of Preserving Options," Atlantic Economic Journal, Springer;International Atlantic Economic Society, vol. 43(4), pages 431-448, December.
    14. Frech, Ted E & Zweifel, Peter, 2015. "Why ‘Optimal’ Payment for Healthcare Providers Can Never Be Optimal Under Community Rating," University of California at Santa Barbara, Economics Working Paper Series qt37b9q0k3, Department of Economics, UC Santa Barbara.
    15. Alessandro Mengoni & Chiara Seghieri & Sabina Nuti, 2013. "The application of discrete choice experiments in health economics: a systematic review of the literature," Working Papers 201301, Scuola Superiore Sant'Anna of Pisa, Istituto di Management.
    16. Chung-Ping Loh & Katrin Nihalani & Oliver Schnusenberg, 2012. "Measuring attitude toward social health insurance," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 13(6), pages 707-722, December.
    17. Emily Lancsar & Peter Burge, 2014. "Choice modelling research in health economics," Chapters,in: Handbook of Choice Modelling, chapter 28, pages 675-687 Edward Elgar Publishing.

    More about this item

    Keywords

    Health insurance; Health care; Regulation; Preference measurement; Discrete choice experiments; L51; D61; C93; I11; I18;

    JEL classification:

    • L51 - Industrial Organization - - Regulation and Industrial Policy - - - Economics of Regulation
    • D61 - Microeconomics - - Welfare Economics - - - Allocative Efficiency; Cost-Benefit Analysis
    • C93 - Mathematical and Quantitative Methods - - Design of Experiments - - - Field Experiments
    • I11 - Health, Education, and Welfare - - Health - - - Analysis of Health Care Markets
    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health

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