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

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  • EECKHOUDT, Louis
  • MARCHAND, Maurice
  • PESTIEAU, Pierre
  • PIASER, Gwenael

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.

Suggested Citation

  • EECKHOUDT, Louis & MARCHAND, Maurice & PESTIEAU, Pierre & PIASER, Gwenael, 2004. "Are differential co-payment rates appropriate in the health sector ?," CORE Discussion Papers 2004070, Universit√© catholique de Louvain, Center for Operations Research and Econometrics (CORE).
  • Handle: RePEc:cor:louvco:2004070
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    File URL: https://uclouvain.be/en/research-institutes/immaq/core/dp-2004.html
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    References listed on IDEAS

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    1. Byrne, Margaret M. & Thompson, Peter, 2001. "Screening and preventable illness," Journal of Health Economics, Elsevier, vol. 20(6), pages 1077-1088, November.
    2. 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.
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    Cited by:

    1. Ellis, Randall P. & Manning, Willard G., 2007. "Optimal health insurance for prevention and treatment," Journal of Health Economics, Elsevier, vol. 26(6), pages 1128-1150, December.

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