Reports Outline Health Insurance Study Results from University College (Medical insurance and free choice of physician shape patient overtreatment: A…

Reports Outline Health Insurance Study Results from University College (Medical insurance and free choice of physician shape patient overtreatment: A laboratory experiment)

By a News Reporter-Staff News Editor at Managed Care Weekly Digest -- Researchers detail new data in Health Insurance. According to news reporting originating from London, United Kingdom, by NewsRx correspondents, research stated, "In a laboratory experiment designed to capture key aspects of the interaction between physicians and patients, we study the effects of medical insurance and competition in the guise of free choice of physician, including observability of physicians' market shares. Medical treatment is an example of a credence good: only the physician knows the appropriate treatment, the patient does not."

Our news editors obtained a quote from the research from University College, "Even after a consultation, the patient is not sure whether he received the right treatment or whether he was perhaps overtreated. We find that with insurance, moral hazard looms on both sides of the market: patients consult more often and physicians overtreat more often than in the baseline condition. Competition decreases overtreatment compared to the baseline and patients therefore consult more often."

According to the news editors, the research concluded: "When the two institutions are combined, competition is found to partially offset the adverse effects of insurance: most patients seek treatment, but overtreatment is moderated."

For more information on this research see: Medical insurance and free choice of physician shape patient overtreatment: A laboratory experiment. Journal of Economic Behavior & Organization, 2016;131():78-105. Journal of Economic Behavior & Organization can be contacted at: Elsevier Science Bv, PO Box 211, 1000 Ae Amsterdam, Netherlands. (Elsevier - www.elsevier.com; Journal of Economic Behavior & Organization - www.journals.elsevier.com/journal-of-economic-behavior-and-organization/)

The news editors report that additional information may be obtained by contacting S. Huck, UCL, London, United Kingdom. Additional authors for this research include G. Lunser, F. Spitzer and J.R. Tyran (see also Health Insurance).

Keywords for this news article include: London, United Kingdom, Europe, Medical Insurance, Health Insurance, University College.

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