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Title
Individual health accounts: an alternative health care financing approach.
First Author
Stano, Miron
Date of Pub
1981 Sep
Pages
117-125
Volume
3
Issue
1
Other Authors
N/A
Abstract
After examining the major determinants of inefficiency in health care markets and several recent proposals to correct these problems, this paper introduces a market-oriented alternative which could be highly efficient while meeting all the established goals of a national health plan. To achieve these objectives, traditional forms of insurance would be replaced by a system with the following characteristics: (1) instead of buying insurance, individuals and their employers would be required to contribute into individual health accounts from which each family would pay for medical care; (2) Once accumulations attain a designated level, any excess accumulations are distributed to the individual; and (3) A national health fund is established to support those without regular accumulations or those whose accounts have been depleted. This paper develops these principles to show how everyone would have access to care as well as the financial security normally associated with comprehensive insurance. But, by inducing many patients to behave as if they were paying for the full cost of care through reductions in potential earnings from their accounts, the paper explains how significant savings in total spending could also be achieved.
Abstract Continued
N/A
MeSH
Consumer Participation : Economic Competition : Economics : Insurance, Health : United States
NTIS Number
PB82-130170