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Health Insurance as a Two-Part Pricing Contract
National Bureau of Economic Research [NBER] Link to more items from this source
Nov. 20, 2006
Excerpt: Monopolies appear throughout health care markets, as a result of patents, limits to the extent of the market, or the presence of unique inputs and skills. In the health care industry, however, the deadweight costs of monopoly may be small or even absent. Health insurance, frequently implemented as an ex ante premium coupled with an ex post co-payment per unit consumed, effectively operates as a two-part pricing contract.

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