TY - JOUR
T1 - How can we bend the cost curve?
T2 - Risk-adjusting the doughnut hole to improve efficiency and equity
AU - van Kleef, Richard C.
AU - van de Ven, Wynand P.M.M.
AU - van Vliet, René C.J.A.
PY - 2012/12
Y1 - 2012/12
N2 - An important goal of consumer cost-sharing in health insurance is to increase incentives for cost containment. A relatively new cost-sharing phenomenon is the "doughnut hole": a gap in coverage starting at a predefined level of medical expenses. An important question is where to locate the starting point to achieve the strongest incentives for cost containment. We argue that the answer depends on an individual's health status. Using data from aDutch insurer, this paper illustrates that using a risk-adjusted starting point results in both stronger incentives for cost containment and more equity than a uniform starting point.
AB - An important goal of consumer cost-sharing in health insurance is to increase incentives for cost containment. A relatively new cost-sharing phenomenon is the "doughnut hole": a gap in coverage starting at a predefined level of medical expenses. An important question is where to locate the starting point to achieve the strongest incentives for cost containment. We argue that the answer depends on an individual's health status. Using data from aDutch insurer, this paper illustrates that using a risk-adjusted starting point results in both stronger incentives for cost containment and more equity than a uniform starting point.
UR - http://www.scopus.com/inward/record.url?scp=84867286343&partnerID=8YFLogxK
U2 - 10.5034/inquiryjrnl_48.04.05
DO - 10.5034/inquiryjrnl_48.04.05
M3 - Article
C2 - 22397061
AN - SCOPUS:84867286343
SN - 0046-9580
VL - 48
SP - 313
EP - 321
JO - Inquiry (United States)
JF - Inquiry (United States)
IS - 4
ER -
