Do patients follow prescribed medical treatment more closely when a pharmacy opens in their neighborhood? How do hospitals respond to performance-based incentives to improve the quality of care?
The availability of large, easily accessible datasets allows ready economic analysis of the healthcare sector today.
Price theory combines theoretical and empirical analysis to better understand economic decision-making. This powerful tool is an essential approach for examining health and the function of health care markets and policies.
When the government denies disability benefits to applicants who are married, spouses step up and earn more. But single individuals saw their incomes decline, managing to earn back only a small share of the denied benefit.
What is the best way to improve access to healthcare in poorer parts of the world? Will people value and utilize free insurance the same way they would a cash payment?
Under the Affordable Care Act, insurers can no longer deny or price medical coverage based on pre-existing conditions. This offers enormous benefits to those who could not obtain or afford adequate coverage—and potentially enormous risks to health insurance markets.
To design premium subsidies in a health insurance market it is necessary to estimate consumer demand, cost, and study how different subsidy schemes affect insurer's incentives. I combine data on household-level enrollment and plan-level claims from the California Affordable Care Act insurance exchange with a model of insurance demand and insurers' competition to assess equilibrium outcomes under alternative subsidy designs. I estimate that younger households are significantly more price sensitive and cheaper to cover.
The Affordable Care Act's taxes, subsidies, and regulations significantly alter terms of trade in both goods and factor markets. We use an extended version of the classic Harberger model to predict and quantify consequences of the Affordable Care Act for the incidence of health insurace coverage and patterns of labor usage. If and when the new exchange plans are competitive with employer-sponsored insurance (ESI), more than 21 million people will leave ESI as a consequence of the law.
A health insurer’s Medical Loss Ratio (MLR) is the share of premiums spent on medical claims. As part of the goal of reducing the cost of health care coverage, the Affordable Care Act introduced minimum MLR provisions for all health insurance sold in fully-insured commercial markets as of 2011, thereby explicitly capping insurer profit margins, but not levels. This cap was binding for many insurers, with over $1 billion of rebates paid in the first year of implementation.