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Healthcare Economics, Public Economics

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Consider two different consumer-directed health plans. One has a $5000 deductible, with the insurance paying for all care after the deductible has been met. The other has a $2000 deductible, a 10% coinsurance rate after the deductible is met, and a “stop-loss”
(maximum out-of-pocket payment) of $5000.
Discuss the differences between these two plans. Which one subjects the consumer to more risk? How do they differ in their effects on consumer incentives to use care, over different possible ranges of spending?

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