Corpus ID: 7312520

Consumer Responsiveness to Simple Health Care Prices: Evidence From Tiered Hospital Networks∗

@inproceedings{Prager2017ConsumerRT,
  title={Consumer Responsiveness to Simple Health Care Prices: Evidence From Tiered Hospital Networks∗},
  author={Elena Prager},
  year={2017}
}

Elena Prager

Published 2017

This paper shows that consumers price-shop for health care when they can easily assess out-of-pocket prices. Health care cost containment efforts increasingly incentivize price-shopping, despite recent evidence that this does not steer consumers toward lower-priced care. I show that consumers priceshop in the highly simplified price information environment of health insurance plans with tiered hospital networks. These consumers observe a single predictable, well-defined price that applies to a… CONTINUE READING

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