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A case for patient charges?

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Keywords
  • Rand Health Insurance Experiment
  • Co-Insurance
  • Business And Economics

Abstract

A small co-insurance rate, corresponding to say 5 percent of the patient's annual taxable income, would reduce the the demand for health care substantially and allow tax reductions. Under certain conditions the latter would be so large that the net effect would be increase income for everyone concerned. Hence, do we have a case for patient charges? - Yes, but only under certain conditions.

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