In this paper we propose a new approach for the design of pharmaceutical copayments. We departure from the standard efficiency argument that advocates for copayments that are decreasing in the health benefits of the patients in order to discipline consumption. Under our approach, copayments are...

Premium subsidies have been advocated as an alternative to social health insurance. These subsidies are paid if expenditure on health insurance exceeds a given share of income. In this paper, we examine whether this approach is superior to social insurance from a welfare perspective. We show...