Healthcare

The CDHP Premium Difference

Individuals switch to consumer directed health plans (CDHP) in an effort to save money, and to have an insurance plan that accurately reflects their risk aversion and actuarial value. Such plans are cost effective for individuals with low risk of catastrophic (high cost) events because the plans are generally offered in connection with higher deductibles … Continue reading

Healthcare

Aligning the Incentives of Patients and Insurers

A cause of increasing health care costs is the three-player game between patients, providers, and insurers. Patients interact with providers at the time of service, deciding which service to provide. Insurers interact with providers after the service has been performed to supply payment. Patients interact with insurers regularly to pay premiums. Thus, patients do not … Continue reading