2010
DOI: 10.1002/hec.1698
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Public and private health‐care financing with alternate public rationing rules

Abstract: We develop a model to analyze parallel public and private health-care financing under two alternative public sector rationing rules: needs-based rationing and random rationing. Individuals vary in income and severity of illness. There is a limited supply of health-care resources used to treat individuals, causing some individuals to go untreated. Insurers (both public and private) must bid to obtain the necessary health-care resources to treat their beneficiaries. Given individuals' willingnesses-to-pay for pr… Show more

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Cited by 19 publications
(53 citation statements)
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“…To model the interaction between parallel public and private health care financing and the allocation rule of the public health care system, Cuff et al (2010) assume a continuum of individuals who differ along two dimensions: income ( Y ) and severity of illness ( s ). An individual knows her income but is unaware of her severity of illness.…”
Section: Theoretical Modelmentioning
confidence: 99%
See 3 more Smart Citations
“…To model the interaction between parallel public and private health care financing and the allocation rule of the public health care system, Cuff et al (2010) assume a continuum of individuals who differ along two dimensions: income ( Y ) and severity of illness ( s ). An individual knows her income but is unaware of her severity of illness.…”
Section: Theoretical Modelmentioning
confidence: 99%
“…Cuff et al (2010) determine the equilibrium in the market for health care resources by first calculating each individual's WTP for private insurance assuming that individuals are expected‐payoff maximizers 6 . At the time an individual decides whether to purchase private insurance, she does not know her severity of illness or the probability of receiving health care in the public system.…”
Section: Theoretical Modelmentioning
confidence: 99%
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“…13 It has been suggested that the preferential treatment of workers through expediting investigations, assessments, and surgery may create unequal access to care for patients with non–work-related injuries, who have to wait longer due to limited available resources. 5,6,12 However, parallel insurance helps improve quality standards, accountability, and innovation for injured workers without taking away resources from the public health by using the excess underutilized capacity of the surgeons and operating theaters of the public system.…”
Section: Discussionmentioning
confidence: 99%