We assess the quantitative importance of reclassification risk in the US health insurance market. Reclassification risk arises because the health conditions of individuals evolve over time, while a typical health insurance contract only lasts for one year. Thus, a change in the health status can...

We analyze exclusive contracts between health care providers and insurers in a model where some consumers choose to stay uninsured. In case of a monopoly insurer, exclusion of a provider changes the distribution of consumers who choose not to insure. Although the foreclosed care provider remains...

Deductibles in health insurance are often regarded as a means to contain health care costs when individuals exhibit moral hazard. However, in the absence of moral hazard, voluntarily chosen deductibles may instead lead to self-selection into different insurance contracts. We use a set of new...

This study develops and tests a model to examine the determinants of the structure of payment systems for providers as a contract between the insurer and the provider and to explain the existence of a variety of payment systems in health insurance markets. This article characterizes payment...

The political solution to our health crisis appears to be an expanded health coverage program, perhaps universal and mandatory. Increased coverage is expected to result in affordable (and available) care, which will translate into earlier diagnoses and more effective treatment, which in turn...

The crowding-out by Medicaid has been identified as a possible reason for the low demand for private long-term care insurance. I extend the previous analysis to the case in which budget constraints inhibit access to care. This changes the nature, scope, and welfare implications of crowding-out....

We present and empirically implement an equilibrium labor market search model where risk averse workers facing medical expenditure shocks are matched with firms making health insurance coverage decisions. Our model delivers a rich set of predictions that can account for a wide variety of...

This paper analyzes the impact of (quasi-) hyperbolic discounting on timing and numbers of births. Using a simple three period model it shows that without the ability to save and borrow hyperbolic discounters postpone births and give birth to less children than previously intended. In the...

Many countries with generous social insurance are currently forced to cut back or modify their systems. At the same time many developing countries lack social insurance for large segments of the population. Health accounts may offer a way of implementing health insurance that keeps a lid on...

Although the most visible manifestations of medical malpractice involve patient safety and the legal process, the availability and affordability of liability insurance largely determine the direction of medical malpractice policy. Scientific and industrial developments since the first modern...