Can poverty improve health?

A recent paper by Franco et al. (2007) claims that increased poverty may improve health (see also NPR’s Marketplace report). How is this possible? Lower income reduces excess food as well as cigarette consumption.  Further, poverty makes public transportation less affordable and individuals may substitute walking for taking the bus.  The authors study Cuba’s experience…

Implicit Tax: Medicare as a Secondary Payer

“Medicare adopted its [Medicare as a Secondary Payer] MSP policy in 1982, effective January 1, 1983. This legislation states that for individuals working at firms with 20 or more employees, and otherwise eligible for Medicare benefits, Medicare serves as a secondary payer for health care expenses. The employer’s health insurance is the first payer. Because…

Contracting for Government Services

Local governments provide a variety of services which are highly valued by their residents. From police protection to waste disposal, from snow plowing to utility meter reading, the local government is charged with providing the infrastructure necessary for a smooth functioning economy and a high level quality of life. But should local governments outsource these…

Search Frictions in Employer-Based Insurance Markets

Despite much public rhetoric, why is preventative and chronic care so poor in the U.S.? The easy answer is that patients switch plans so frequently that insurance companies who invest in preventative care will incur the cost, but not reap the benefits. The harder question is why patients are switching health plans. According to a…

Focused Factories

The popularity of specialty medical facilities (SMF) has increased over the years. The number of Medicare-certified ambulatory surgery centers (ASCs) has doubled to 3,371 during the past decade. A question remains: are these “Focused Factories” good for society? In an article by Casalino, Devers and Brewster, (“Focused Factories…“) the authors try to answer this question.…