THE IMPACT OF A PUBLIC OPTION IN THE U.S. HEALTH INSURANCE MARKET.

We develop a game-theoretical framework to examine the implications of the introduction of a nonprofit 'public option' in the U.S. health insurance market. In this model, heterogeneous consumers have to choose between two competing insurance plans. One plan is offered by a profit-maximizing private...

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Publicado en:Economic Inquiry Vol. 53; no. 1; pp. 508 - 522
Autores principales: Barbos, Andrei, Deng, Yi
Formato: Artículo
Publicado: Wiley-Blackwell Jan2015
Materias:
Acceso en línea:Ver este registro en EBSCOhost
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        atl: THE IMPACT OF A PUBLIC OPTION IN THE U.S. HEALTH INSURANCE MARKET.
      aug:
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          Barbos, Andrei
          Deng, Yi
        affil:
          Department of Economics, University of South Florida, Tampa FL 33620
          Bureau of Economics, Federal Trade Commission, Washington DC 20580
      su:
        United States
        Health insurance
        Public opinion
        Consumer attitudes
        Health insurance -- Social aspects
        Equilibrium
      sug:
        subj:
          Health insurance
          Public opinion
          Consumer attitudes
          Health insurance -- Social aspects
          United States
          Direct group life, health and medical insurance carriers
          Direct individual life, health and medical insurance carriers
          Equilibrium
      ab: We develop a game-theoretical framework to examine the implications of the introduction of a nonprofit 'public option' in the U.S. health insurance market. In this model, heterogeneous consumers have to choose between two competing insurance plans. One plan is offered by a profit-maximizing private insurer; the other by social-welfare-maximizing public option. In equilibrium, the distinct objectives of the two insurers induce adverse selection in consumer choice: the public option covers the less healthy consumers, yielding the more profitable segment of market to the private insurer. However, our empirical results suggest that both insurers will capture significant parts of the health insurance market. ( JEL I11, L10, L21, L32)
      pubtype: Academic Journal
      doctype: Article
      src: R
    language: English
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