Insurance choice and tax-preferred health savings accounts

Cardon, James H.; Showalter, Mark H.

doi:10.1016/j.jhealeco.2006.10.010

Cited by 22 publications

(14 citation statements)

References 19 publications

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“…Remler and Glied (2006) find that HSAs have the potential to increase cost-sharing in health care and, thus, reduce moral hazard. Cardon and Showalter (2007) theoretically demonstrate that HSAs will lead to higher deductibles and copayments in health insurance. In addition, they conduct a simulation and find that, in the absence of adverse selection, HSAs will induce an increase in overall welfare.…”

Section: Introductionmentioning

confidence: 95%

Impact of health savings accounts on precautionary savings, demand for health insurance and prevention effort

Steinorth

2011

Journal of Health Economics

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Section: Introductionmentioning

confidence: 95%

Impact of health savings accounts on precautionary savings, demand for health insurance and prevention effort

Steinorth

2011

Journal of Health Economics

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“…HSAs and HRAs are fairly new to the health insurance market. They can help reduce spending by giving employees more direct control over funds spent on their coverage (CAHI.org 2004): Cardon and Showalter (2007) develop an infinite horizon utility maximization model of the interaction between insurance choice and tax-preferred health savings accounts. The model can be used to examine a wide range of policy options, including flexible spending accounts, health savings accounts, and health reimbursement accounts.…”

Section: Health Insurance Optionsmentioning

confidence: 99%

Fuzzy Multiattribute Consumer Choice Among Health Insurance Options

Kahraman

Suder

Bekar

2015

Technological and Economic Development of Economy

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People buy insurance to protect themselves against possible financial loss in the future. Health insurance provides protection against the possibility of financial loss due to health care use. A selection among health insurance options is a multiattribute decision making problem including many conflicting criteria. This problem can be better solved using the fuzzy set theory since human decision making is generally based on vague and linguistic data. We propose an integrated methodology composed of fuzzy AHP and fuzzy TOPSIS to select the best health insurance option. The considered option types, Health Savings Account (HSA), Flexible Spending Accounts (FSA), and Health Reimbursement Arrangement (HRA) are evaluated using eight different criteria under fuzziness. A sensitivity analysis is also realized. With competition increasing among health care plans, employees of large firms typically are faced with more opportunities for choice and more complex options than in the past. Most people understand that an insurance choice may be important for them, but their decision making also appears very limited. The dominant model of choice assumes careful examination and weighing of alternatives, but as the number of choices grows, this becomes an increasingly complex and difficult task.The selection of health plans and providers is, in part, an iterative process in which individuals better learn to make informed choices responsive to their needs. The instability in initial choices, however, suggests considerable failure to understand important differences among plans in access, cost, and freedom to select providers or to be reimbursed for services outside the plan. This is particularly true as populations select plans with which they have had little prior experience. Some preferences seem much more central to people's decisions than others. The primary preferences are related to the character of established doctor/patient relationships, cost, and special needs (Mechanic 1989).There are numerous different health insurance plans available in any country today. Because every person has their own unique situation, determining "the best" health insurance plan will vary from person to person. Situations vary and health insurance plans that are right for one person's situation may not be right for someone else's. This is why we propose a methodology for the selection among health insurance options in this paper.Individual choice over health insurance policies may result in risk-based sorting across plans. People are generally unsuccessful in selecting an alternative with more than four criteria. In approaching choice situations, people immediately make efforts to narrow the number of operative choices to a psychologically manageable set. Typically, individuals consider very few alternatives and focus the comparison only on a subset of the many relevant dimensions. People are more likely to select familiar options. Familiarity may be assessed by prior experience with a particular type of health plan arrangement (Mechanic 1989).The...

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“…• When the controlling epicenter is the production/delivery system, the problems of overpricing, price-gouging, underserving ghetto markets, duplicate testing and unnecessary surgery, overprescriptions of drugs, underserving neonatal care, and overserving elderly care, and the like have generated hyper health care inflation as in Figure 3 (e.g., D'Cruz & Kini, 2008). • When control is moved to the health care financing sector, especially the commercial health insurance companies, the typical problems are exorbitant premiums, unacceptable profit margins, high co-pays and insurer-controlled health care delivery (e.g., Cardon & Showalter, 2007). • When the court of law becomes the focus in a highly litigious society like the United States, the result is unacceptably high malpractice insurance that will force greatly skilled and well intentioned physician into administration and other professions and/or into early retirement.…”

Section: Information Asymmetry In the Health Care Systemmentioning

confidence: 99%

“…The government can take the lead role to make this happen to turnaround health care (e.g., flexible spending accounts, medical savings accounts). (Cardon & Showalter, 2007;Mascarenhas, Kesavan, & Bernacchi, 2003) The CJ is much more relevant to most disadvantaged health care consumer: Egalitarian DJ is linked with the doctrines of consumer vulnerability, disadvantage and detriment, and, thus, is particularly relevant with vulnerable market segments such as pregnant mothers, children, teenagers, patientconsumers living in ghettos and the elderly. Vulnerability implies some form of "forced choice" or an inability to resist a market offering owing to partial information.…”

Section: Corrective Justice: As Policy For Information Asymmetry Redumentioning

confidence: 99%

On Reducing Information Asymmetry in U.S. Health Care

Mascarenhas

Kesavan

Bernacchi

2013

Health Marketing Quarterly

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Information asymmetry is a significant issue facing the U.S. health care system. In this article, we investigate some methods of reducing this asymmetry. We trace the information asymmetry using the "wicked problem" of the health care distribution system. An information asymmetry reduction method requiring joint responsibilities among health care stakeholders is developed. It is argued that information asymmetry is a contributor to enormous health care inflation. Hence, any reduction in such asymmetry will reduce health care costs. Concepts from both signaling and corrective justice theories are integrated in this article to help reduce the information asymmetry that exists in the U.S. health care system. Getting health care costs in line with other "advanced" nations, is the long-term solution to the wicked problem that currently exists in the U.S. health care system. There is an immediate need for a centralized health care database with adequate provisions for individual privacy. Both processes as well as an outcome-based control system are essential for reducing information asymmetries in the U.S. health care system.

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Insurance choice and tax-preferred health savings accounts

Cited by 22 publications

References 19 publications

Impact of health savings accounts on precautionary savings, demand for health insurance and prevention effort

Impact of health savings accounts on precautionary savings, demand for health insurance and prevention effort

Fuzzy Multiattribute Consumer Choice Among Health Insurance Options

On Reducing Information Asymmetry in U.S. Health Care

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