Premium levels and demand response in health insurance: relative thinking and zero-price effects
In health care systems with a competitive health insurance market, governments or other sponsors (e.g. employers) often subsidize premiums to encourage enrolment. These subsidies are typically independent of plan choice leaving the absolute premium differences in place so as not to distort consumer choice of plan.
CPB Discussion Paper 366 | 12 October 2017
46 pages | pdf document, 2 MB