|
MARKETWATCH
Doughnut-Hole Economics
Meredith B. Rosenthal
Both the recently enacted Medicare prescription drug benefit and a new cohort of consumer-directed health benefit models offer doughnut-shaped insurance coverage with large deductibles that begin around the mean annual spending for enrollees. These policies leave enrollees to bear more risk than policies with equal expected payouts that rely on first-dollar deductibles. This risk to enrollees is substantial, given the skewed distribution of health care spending and the placement of the typical deductible. I consider alternative explanations for this new benefit design trend and conclude that the desire to distribute tangible benefits to the largest number of constituents is most plausible.
       What's this?
This article has been cited by other articles:
|
|
|
|
 
V. Gray, D. Lowery, and E. K. Godwin
Public Preferences and Organized Interests in Health Policy: State Pharmacy Assistance Programs as Innovations
Journal of Health Politics Policy and Law,
February 1, 2007;
32(1):
89 - 129.
[Abstract]
[PDF]
|
|
|
|
|
|
|
W. F. Gellad, H. A. Huskamp, K. A. Phillips, and J. S. Haas
How The New Medicare Drug Benefit Could Affect Vulnerable Populations
Health Aff.,
January 1, 2006;
25(1):
248 - 255.
[Abstract]
[Full Text]
[PDF]
|
|
|
|
|
|
|
M. Schlesinger
Getting a Piece of the Pie
Journal of Health Politics Policy and Law,
August 1, 2005;
30(4):
555 - 562.
[PDF]
|
|
|
|
