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Modest risk-sharing significantly reduces health plans’ incentives for service distortion
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Brammli-Greenberg, Shuli, Glazer, Jacob and Waitzberg, Ruth (2019) Modest risk-sharing significantly reduces health plans’ incentives for service distortion. The European Journal of Health Economics, 20 . pp. 1359-1374. doi:10.1007/s10198-019-01102-w ISSN 1618-7598.
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WRAP-modest-risk-sharing-significantly-reduces-health-plans-incentives-service-distortion-Glazer-2019.pdf - Accepted Version - Requires a PDF viewer. Download (1264Kb) | Preview |
Official URL: https://doi.org/10.1007/s10198-019-01102-w
Abstract
Public payers often use payment mechanisms as a way to improve the efficiency of the healthcare system. One source of inefficiency is service distortion (SD) in which health plans over/underprovide services in order to affect the mix of their enrollees. Using Israeli data, we apply a new measure of SD to show that a mixed payment scheme, with a modest level of cost sharing, yields a significant improvement over a pure risk-adjustment scheme. This observation implies that even though mixed systems induce overprovision of some services, their benefits far outweigh their costs.
Item Type: | Journal Article | ||||||||
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Subjects: | R Medicine > RA Public aspects of medicine | ||||||||
Divisions: | Faculty of Social Sciences > Economics | ||||||||
Library of Congress Subject Headings (LCSH): | Medical care , Medical care -- Israel, Medical policy , Medical policy -- Israel, Medical policy -- Citizen participation , Medical care -- Cost shifting -- Israel, Medical care, Cost of -- Israel | ||||||||
Journal or Publication Title: | The European Journal of Health Economics | ||||||||
Publisher: | Springer | ||||||||
ISSN: | 1618-7598 | ||||||||
Official Date: | December 2019 | ||||||||
Dates: |
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Volume: | 20 | ||||||||
Page Range: | pp. 1359-1374 | ||||||||
DOI: | 10.1007/s10198-019-01102-w | ||||||||
Status: | Peer Reviewed | ||||||||
Publication Status: | Published | ||||||||
Reuse Statement (publisher, data, author rights): | This is a post-peer-review, pre-copyedit version of an article published in The European Journal of Health Economics. The final authenticated version is available online at: http://dx.doi.org/10.1007/s10198-019-01102-w | ||||||||
Access rights to Published version: | Restricted or Subscription Access | ||||||||
Date of first compliant deposit: | 13 August 2019 | ||||||||
Date of first compliant Open Access: | 22 August 2020 | ||||||||
RIOXX Funder/Project Grant: |
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