IDEAS home Printed from https://ideas.repec.org/p/uct/uconnp/1997-05.html
   My bibliography  Save this paper

The Economics of Incentive-Based Health Care Plans

Author

Listed:
  • Dennis Heffley

    (University of Connecticut)

  • Thomas J. Miceli

    (University of Connecticut)

Abstract

Medical savings accounts (MSAs) belong to a larger class of incentive-based health care plans. Using a model that allows the consumer to invest in healthy activities, we examine the efficiency properties of incentive plans and compare them to traditional full- coverage and deductible plans, under both experience rating and community rating. The model also is extended to include utilization of preventive health care. Properly constructed incentive plans have the capacity to induce socially efficient levels of healthy activities and preventive care, raising the expected wealth of consumers without reducing insurers' profits.

Suggested Citation

  • Dennis Heffley & Thomas J. Miceli, 1997. "The Economics of Incentive-Based Health Care Plans," Working papers 1997-05, University of Connecticut, Department of Economics.
  • Handle: RePEc:uct:uconnp:1997-05
    as

    Download full text from publisher

    File URL: http://web2.uconn.edu/economics/working/1997-05.pdf
    Download Restriction: no

    References listed on IDEAS

    as
    1. Ellis, Randall P. & McGuire, Thomas G., 1990. "Optimal payment systems for health services," Journal of Health Economics, Elsevier, vol. 9(4), pages 375-396, December.
    2. Joseph P. Newhouse, 1996. "Policy Watch: Medicare," Journal of Economic Perspectives, American Economic Association, vol. 10(3), pages 159-167, Summer.
    3. Selden, Thomas M., 1990. "A model of capitation," Journal of Health Economics, Elsevier, vol. 9(4), pages 397-409, December.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Query, J. Tim, 2000. "An analysis of the Medical Savings Account as an alternative retirement savings Vehicle," Financial Services Review, Elsevier, pages 107-123.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:uct:uconnp:1997-05. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Mark McConnel). General contact details of provider: http://edirc.repec.org/data/deuctus.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.