The-role-of-insurance-in-health-care,-part-2课件.pptVIP

* . . * . . The role of insurance in health care, part 2 Today: More on moral hazard Other issues in insurance Problems with insurance * 。 Health care Suppose that Angela has been admitted to the hospital after being in a car accident She has a substantial MB for the first night in the hospital, due to the care that she needs * 。 Health care As Angela’s condition improves, her MB declines When the demand hits the horizontal axis, she is completely better Think of demand like MB Think of supply like MC * 。 20 percent co-insurance Assume that Angela pays 20% of her costs This is also known as coinsurance Angela will then decide to stay in the hospital as long as MB for each night exceeds its MC She will want to stay in the hospital as long as her benefit is at least 20% of the hospital’s cost * 。 What about a percentage co-payment? What if Angela had to pay 20% of her costs while in the hospital Her PRIVATE MC is two-tenths of MC curve (See dashed line) Equilibrium is at the yellow circle 0.2 MC * 。 Only a co-payment Suppose that Angela’s insurance only mandates that she makes a co-payment Angela’s PRIVATE MC is zero after being admitted If hospital lets Angela stay in the hospital as long as she wants, equilibrium occurs at Q2 MB and private MC are both zero here * 。 What is optimal? Angela’s optimal length of hospital stay occurs when the PUBLIC MC equals MB This occurs at point A * 。 Deadweight loss due to 20% coinsurance * 。 Flat-of-the-curve medicine Flat-of-the-curve Spending that occurs with low MB Is the US practicing this type of medicine? Likely in some cases, due to insurance Analysis across countries is more complicated Countries with nationalized medicine may not provide some services with MB MC Malpractice costs Health care costs for selected countries: See Figure 9.5, p. 200 * 。 Some final issues Externalities Graying of the population Longer life expectancy Retiring baby boomers Improved technology Reimbursement policies * 。 Externalities External