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Basic versus supplementary health insurance: the role of cost effectiveness and prevalence

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  • Boone, Jan

Abstract

In a model where patients face budget constraints that make some treatments unaffordable, we ask which treatments should be covered by universal basic insurance and which by private voluntary insurance. We argue that both cost effectiveness and prevalence are important if the government wants to maximize the health gain that it gets from its health budget. In particular, basic insurance should cover treatments that are used by people who at the margin buy treatments that are highly cost effective. This is not the same as covering treatments that are themselves highly cost effective

Suggested Citation

  • Boone, Jan, 2014. "Basic versus supplementary health insurance: the role of cost effectiveness and prevalence," CEPR Discussion Papers 10233, C.E.P.R. Discussion Papers.
  • Handle: RePEc:cpr:ceprdp:10233
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    Blog mentions

    As found by EconAcademics.org, the blog aggregator for Economics research:
    1. Rita Faria’s journal round-up for 18th June 2018
      by Rita Faria in The Academic Health Economists' Blog on 2018-06-18 11:00:47

    Citations

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    Cited by:

    1. Boone, Jan, 2015. "Basic versus supplementary health insurance: Moral hazard and adverse selection," Journal of Public Economics, Elsevier, vol. 128(C), pages 50-58.
    2. Boone, J., 2014. "Basic Versus Supplementary Health Insurance : Moral Hazard and Adverse Selection," Other publications TiSEM 6bf0e55c-e004-4c9e-8065-6, Tilburg University, School of Economics and Management.
    3. Boone, J., 2014. "Basic Versus Supplementary Health Insurance : Moral Hazard and Adverse Selection," Other publications TiSEM 8ad45428-2ab4-406f-bbd3-3, Tilburg University, School of Economics and Management.

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    More about this item

    Keywords

    access to care; cost effectiveness; public vs private insurance; universal basic health insurance; voluntary supplementary insurance;
    All these keywords.

    JEL classification:

    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design
    • H51 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Health
    • I13 - Health, Education, and Welfare - - Health - - - Health Insurance, Public and Private
    • I14 - Health, Education, and Welfare - - Health - - - Health and Inequality

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