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Related Experiment Videos

Third party buying: the trend and the consequences.

A L Stinchcombe

    Social Forces; a Scientific Medium of Social Study and Interpretation
    |May 10, 1984
    PubMed
    Summary

    Employer-sponsored health insurance, life insurance, and pensions raise concerns about consumer choice and service availability. This study suggests social indicators to assess these third-party buying trends and their impact.

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    Area of Science:

    • Health Economics
    • Social Policy
    • Insurance Markets

    Background:

    • Increasing trend of employer-sponsored benefits (health insurance, life insurance, pensions/annuities).
    • Challenges arise concerning consumer sovereignty, provider incentives, and service accessibility through group purchasing.
    • Need for effective social indicators to evaluate policy implications of this trend.

    Purpose of the Study:

    • Analyze incentive systems for consumers, service providers, and employers under third-party buying.
    • Assess existing social indicators related to this trend.
    • Identify and suggest needed social indicators for policy assessment in third-party buying.

    Main Methods:

    • Analysis of incentive structures in employer-sponsored benefit plans.
    • Review and assessment of available social indicators.
    • Literature review of health economics research on the impact of group purchasing on health services and costs.

    Main Results:

    • Identified key incentive issues for all stakeholders in employer-sponsored insurance.
    • Evaluated the adequacy of current social indicators for policy analysis.
    • Highlighted gaps in existing research concerning the impact on health service provision and costs.

    Conclusions:

    • Current social indicators may not fully capture the complexities of third-party buying.
    • Policy assessment requires refined indicators focusing on consumer welfare, provider behavior, and market dynamics.
    • Further research is needed to understand the full economic and social consequences of employer-sponsored insurance trends.

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