PubMed Health⌕ Search

PubMed · 15768668

On regulation.

Abstract

Control of the tariff system should be handed over to an arms-length technical agency similar to the U.S's Medicare Payments Advisory Commission, according to HSJ columnist and former prime ministerial adviser Simon Stevens. He also warns that the 'understandable decision' to slow implementation of the new system means that the elective tariff 'will be easily gamed'.

Explore related subjects

Keep this discovery

Explore connections, maps & timelines

BibTeXRIS

Simon Stevens. 2005-02-17. On regulation.. https://pubmed.ncbi.nlm.nih.gov/15768668/

Cite the original work for its findings. Save a collection to share your selection of sources.

KEEP EXPLORING

Related citations

Optimal risk adjustment with adverse selection and spatial competition.

Paying insurers risk-adjusted prices for covering different individuals can correct selection incentives and induce the market to provide optimal insurance policies. To calculate the optimal risk-adjusted prices we need to know (a) what the optimal policies are; (b) how much they cost; and (c) how competitive the market is. We examine these issues in a model with spatial heterogeneity and adverse selection. Market equilibrium is characterized, and delivery of the socially optimal insurance policies is possible, as long as providers are paid risk-adjusted fees for each individual they serve. When the payment can be made on the basis of an individual's risk, it should be sufficient to cover the expected cost of the socially optimal policy for that person, plus a mark-up. If payments can be made only on the basis of a partially informative signal, the optimal risk-based payments should be adjusted according to a simple linear transformation, identified by Glazer and McGuire [Glazer, J., McGuire, T., 2000. Optimal risk adjustment of health insurance premiums: an application to managed care.

Economic Competition↗

Health insurance and imperfect competition in the health care market.

We show that when health care providers have market power and engage in Cournot competition, a competitive upstream health insurance market results in over-insurance and over-priced health care. Even though consumers and firms anticipate the price interactions between these two markets - the price set in one market affects the demand expressed in the other - Pareto improvements are possible. The results suggest a beneficial role for Government intervention, either in the insurance or the health care market.

Economic Competition↗