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Project Citation: 

Einav, Liran, Finkelstein, Amy, and Williams, Heidi. Replication data for: Paying on the Margin for Medical Care: Evidence from Breast Cancer Treatments. Nashville, TN: American Economic Association [publisher], 2016. Ann Arbor, MI: Inter-university Consortium for Political and Social Research [distributor], 2019-10-13. https://doi.org/10.3886/E114619V1

Project Description

Summary:  View help for Summary We present a simple graphical framework to illustrate the potential welfare gains from a "top-up" health insurance policy requiring patients to pay the incremental price for more expensive treatment options. We apply this framework to breast cancer treatments, where lumpectomy with radiation therapy is more expensive than mastectomy but generates similar average health benefits. We estimate the relative demand for lumpectomy using variation in distance to the nearest radiation facility, and estimate that the "top-up" policy increases social welfare by $700-2,500 per patient relative to two common alternatives. We briefly discuss additional tradeoffs that arise from an ex ante perspective. (JEL G22, I11, I13, I18)

Scope of Project

JEL Classification:  View help for JEL Classification
      G22 Insurance; Insurance Companies; Actuarial Studies
      I11 Analysis of Health Care Markets
      I13 Health Insurance, Public and Private
      I18 Health: Government Policy; Regulation; Public Health


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