Should patients pay high-cost sharing for treatments for the Hepatitis C Virus?

Treatments for the hepatitis C virus (HCV) are expensive.  At one point they cost over $80,000 per year, although costs have decreased since then.  To prevent moral hazard, should insurance companies rely on cost sharing to decrease utilization?  An article by Lakdawalla, Linthicum, and Vanderpuye-Orgle (2016) argues that they shouldn’t. Cost sharing appears even less efficient when…

“Affordable” Care Act

Is the Affordable Care Act making health insurance more affordable?  Generally, the answer is yes.  More individuals are insured due to Medicaid coverage expansions in some but not all states and the implementation of health insurance exchanges.  However, there is one worrying trend in affordability: increasing patient cost sharing. A paper by Hempstead et al. (2015),…

Value-Based Cost Sharing

Many policy experts have been proponents of value-based cost sharing.  Under value-based cost sharing, medical care that is seen to provide a higher marginal benefit to the patient will have lower coinsurance rates than medical care with lower marginal benefits.  If value-based cost sharing would be implemented, preventive care should have low coinsurance rates because…