This article describes the anatomy of health insurance. It begins by considering the optimal design of health insurance …. The analysis then turns to the operation of health insurance markets. Economists generally favor choice in health … them and encourages plans to provide services efficiently. But choice in health insurance is a mixed blessing because of …

This chapter summarizes the many aspects of public policy for health care. I first consider government policy affecting … internalities justify government action. I then turn to markets for medical care and health insurance. Virtually all governments … provide health insurance for some part of the population. Governments face several fundamental choices in this provision. The …

This chapter reviews topics related to the demand for health insurance, including the question of how choice of health … insurance should be structured for consumers. After the first section summarizes some of the institutional features of health …-side cost sharing in health insurance, integrating new developments in multiple goods, consumer errors in valuing health care …