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Related Concept Videos

Introduction To Health Care Delivery System01:18

Introduction To Health Care Delivery System

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The healthcare system is constantly changing and complex. Various services are available from different healthcare providers, but gaining access to these services has become challenging for people with limited healthcare insurance. Uninsured people present a challenge to healthcare because they frequently postpone or forego treatment.
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Methods Of Healthcare Delivery System01:26

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Preventive healthcare services keep people healthy via frequent check-ups, screening, and counseling. They primarily aid in disease prevention rather than treating an acute or chronic illness. Preventive treatment also keeps individuals productive and energetic, allowing them to work well into their retirement years. Examples of preventive care services include:
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Health Information Technology (HIT)
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Issues And Trends In Healthcare Delivery System01:29

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The issues and trends in healthcare delivery are constantly changing. The COVID-19 pandemic is one recent issue that wreaked havoc on healthcare systems, causing a shortage of healthcare workers, high demand for medicines and supplies, and increased medical expenditure due to a lack of insurance. Other issues include rising healthcare costs and care fragmentation.
Cost Containment
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An integrated healthcare system (IHS) is a set of organizations that provides for or arranges to provide coordinated and continuous service to a defined population. The IHS takes responsibility for that particular population's health status and outcome, both clinically and fiscally. An integrated healthcare system is a well-organized, well-coordinated, and collaborative network. The integrated delivery system is a network that connects different healthcare providers to deliver organized,...
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Inverse Probability of Treatment Weighting Propensity Score using the Military Health System Data Repository and National Death Index
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Incentivizing efficient utilization without reducing access: The case against cost-sharing in insurance.

Markus Fels1

  • 1Department of Economics, University of Dortmund (TU), Dortmund, Germany.

Health Economics
|April 23, 2020
PubMed
Summary

Cost-sharing in health insurance reduces care use, even beneficial care. A bonus system offers better incentives without limiting access, proving more optimal than cost-sharing for insurance design.

Keywords:
cost-sharinginsurance rebateslimited accessmoral hazard

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Area of Science:

  • Health Economics
  • Insurance Design
  • Behavioral Economics

Background:

  • Cost-sharing is a common tool to mitigate moral hazard in health insurance.
  • Standard economic theory predicts cost-sharing reduces utilization of inefficient care.

Purpose of the Study:

  • To assess the welfare implications of health insurance designs.
  • To investigate the impact of cost-sharing on healthcare utilization.
  • To compare cost-sharing with alternative incentive mechanisms.

Main Methods:

  • A simple economic model incorporating consumer mistakes and limited access.
  • Analysis of welfare implications under different insurance designs.
  • Empirical deduction of optimal insurance design.

Main Results:

  • Cost-sharing reduces utilization of both efficient and inefficient healthcare.
  • Cost-sharing introduces inefficiencies by limiting access to care.
  • A bonus-based insurance design achieves similar incentivization without access limitations.

Conclusions:

  • Cost-sharing is suboptimal for health insurance design due to access limitations.
  • Bonus systems represent a more efficient alternative to cost-sharing.
  • Optimal insurance design can be determined empirically, though implementation challenges exist.