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Incentives and Choice in Health Care$
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Frank A. Sloan and Hirschel Kasper

Print publication date: 2008

Print ISBN-13: 9780262195775

Published to MIT Press Scholarship Online: August 2013

DOI: 10.7551/mitpress/9780262195775.001.0001

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PRINTED FROM MIT PRESS SCHOLARSHIP ONLINE (www.mitpress.universitypressscholarship.com). (c) Copyright The MIT Press, 2022. All Rights Reserved. An individual user may print out a PDF of a single chapter of a monograph in MITSO for personal use.date: 05 July 2022

To Find the Answer, One Must Know the Question: Health Economics and Public Policy

To Find the Answer, One Must Know the Question: Health Economics and Public Policy

(p.20) (p.21) 2 To Find the Answer, One Must Know the Question: Health Economics and Public Policy
Incentives and Choice in Health Care

Henry J. Aaron

The MIT Press

This chapter discusses health economics from a public policy perspective, focusing on health care policy issues in the United States. Although economists have made substantial progress in a number of areas, public policy demands ever more precise answers, such as how to best structure cost sharing in health insurance plans or how to structure medical malpractice insurance to best achieve the goals of injury deterrence, compensation, and reducing the high administrative cost of tort liability. Various participants in the health care market respond to traditional economic incentives, such as prices and incomes. The chapter examines the influence of incentives on supply and demand of medical services, such as health insurance and personal health care services. It also discusses professional ethics and medical malpractice, technological change, and the organization of health care delivery. Finally, it explores challenges facing health care in the United States.

Keywords:   health economics, public policy, health care policy, United States, economic incentives, prices, incomes, health insurance, professional ethics, medical malpractice

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