Patient Cost-Sharing, Hospitalization Offsets, and the Design of Optimal Health Insurance for the Elderly

@article{Chandra2007PatientCH,
  title={Patient Cost-Sharing, Hospitalization Offsets, and the Design of Optimal Health Insurance for the Elderly},
  author={Amitabh Chandra and Jonathan H Gruber and Robin McKnight},
  journal={NBER Working Paper Series},
  year={2007}
}
Patient cost-sharing for primary care and prescription drugs is designed to reduce the prevalence of moral hazard in medical utilization. Yet the success of this strategy depends on two factors: the elasticity of demand for those medical goods, and the risk of downstream hospitalizations by reducing access to beneficial health care. Surprisingly, we know little about either of these factors for the elderly, the most intensive consumers of health care in our country. We remedy both of these… 

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