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Public coverage of dental care: universal or targeted?

Author

Listed:
  • Kurt R. Brekke

    (Norwegian School of Economics (NHH), Department of Economics,)

  • Odd Rune Straume

    (NIPE/Centre for Research in Economics and Management, University of Minho, Portugal; and Department of Economics, University of Bergen, Norway)

  • Luigi Siciliani

    (Department of Economics and Related Studies, University of York, Heslington, York)

Abstract

This paper analyses the impact of public dental care coverage - universal versus targeted- on access, pricing, and public spending in a model with two competing dental practices and heterogeneous patient income groups. We evaluate two types of reimbursement schemes: fixed subsidies and cost sharing. Our findings show that public coverage improves access for low-income patients but increases producer prices due to reduced price elasticity of demand. Targeted coverage provides greater access at lower public cost compared to universal coverage, especially under cost-sharing schemes. With fixed subsidies, both schemes achieve similar access, but targeted coverage remains more cost-efficient. The policy that maximises utilitarian welfare is targeted coverage with a fixed subsidy, balancing improved access for low-income patients against higher prices for high-income patients. This trade-off highlights challenges in implementing targeted policies but provides insights for designing efficient and equitable public dental care systems.

Suggested Citation

  • Kurt R. Brekke & Odd Rune Straume & Luigi Siciliani, 2025. "Public coverage of dental care: universal or targeted?," NIPE Working Papers 2/2025, NIPE - Universidade do Minho.
  • Handle: RePEc:nip:nipewp:2/2025
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    File URL: https://hdl.handle.net/1822/94830
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    References listed on IDEAS

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    More about this item

    Keywords

    Dental care; Public coverage; Reimbursement schemes;
    All these keywords.

    JEL classification:

    • H51 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Health
    • I11 - Health, Education, and Welfare - - Health - - - Analysis of Health Care Markets
    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health
    • L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets

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