Decomposition of Moral Hazard

Details

• Personal Author:
  Dowd BE ; Koc C ; McCreedy E ; Nyman JA ; Trenz HM
• Description:
  This study seeks to simulate the portion of moral hazard that is due to the income transfer contained in the coinsurance price reduction. Healthcare spending of uninsured individuals from the MEPS with a priority health condition is compared with the predicted counterfactual spending of those same individuals if they were insured with either (1) a conventional policy that paid off with a coinsurance rate or (2) a contingent claims policy that paid off by a lump sum payment upon becoming ill. The lump sum payment is set to be equal to the insurer's predicted spending under the coinsurance policy. The proportion of moral hazard that is efficient is calculated as the proportion of total moral hazard that is generated by this lump sum payment. We find that the efficient proportion of moral hazard varies from disease to disease, but is the highest for those with diabetes and cancer. [Description provided by NIOSH]
• Subjects:
  Economics Occupational Health Safety
• Keywords:
  Author Keywords: Moral Hazard Cost Estimates Costs Economic Analysis Efficient Moral Hazard Health Care Health Insurance Income Effects Medical Treatment
• ISSN:
  0167-6296
• Document Type:
  Text
• Funding:
  Grant
• Genre:
  Journal Article
• Place as Subject:
  District of Columbia ; Minnesota ; OSHA Region 1 ; OSHA Region 3 ; OSHA Region 5 ; Rhode Island
• CIO:
  National Institute for Occupational Safety and Health (NIOSH)
• Topic:
  Workplace Safety & Health
• Location:
  North America
• Pages in Document:
  168-178
• Volume:
  57
• NIOSHTIC Number:
  nn:20064240
• Citation:
  J Health Econ 2018 Jan; 57:168-178
• Contact Point Address:
  John A. Nyman, Division of Health Policy and Management, School of Public Health, University of Minnesota, 420 Delaware St. SE, Box 729, Minneapolis, MN, 55455-0392, United States
• Email:
  Nyman001@umn.edu
• Federal Fiscal Year:
  2018
• Performing Organization:
  University of Minnesota Twin Cities
• Peer Reviewed:
  True
• Start Date:
  20050701
• Source Full Name:
  Journal of Health Economics
• End Date:
  20250630
• Collection(s):
  National Institute for Occupational Safety and Health
• Main Document Checksum:
  urn:sha-512:e5774ce28bfbc555c652a7df9818706254f87debb219992ed9bb4495ae4d7d0c82eb2242a623956db04caa3a296da6978bd656335ab91caf5cbf2b66d17c1a06
• Download URL:
  https://stacks.cdc.gov/view/cdc/222741/cdc_222741_DS1.pdf
• File Type:
  [PDF - 591.60 KB ]