Are COVID-19 tests free?

The answer should be ‘yes’. From an economist’s perspective, prices for goods and services should generally be set at marginal cost unless there are externalities. In the case of COVID-19, there are clear externalities. By finding out that someone is COVID-19 positive, one could not only treat the patient (not an externality) but also the…

More evidence that social distancing works

Kapoor et al. (2020) uses rainfall on last weekend before the stay-at-home order as an instrument for social distancing. variables. They find that social distancing works and has persistent effects, especially early on: We test whether earlier social distancing affects the progression of a local COVID-19 outbreak. We exploit county-level rainfall on the last weekend…

Fighting fraud sensibly in a global pandemic

COVID-19 has wreaked havoc for patients, family, the economy and the health care system. In an attempt to provide support to families and businesses, the Coronavirus Aid, Relief, and Economic Security (CARES) Act injects funding into the economy. Further, regulations have been relaxed. As Michael Adelberg and Melissa Garrido write today in the Health Affairs…

Does social distancing matter?

According to a working paper by Greenstone and Nigam (2020), the answer is a resounding yes! …we project that moderate social distancing would save 1.7 million lives between March 1 and October 1, with 630,000 due to avoided overwhelming of hospital intensive care units. Using the projected age-specific reductions in death and age-varying estimates of…

Could COVID-19 be a financial boon to health insurers?

Treating serious cases of COVID-19 is expensive. Treatment may require ICU beds, ventilators and lots of specialized staff time. So clearly, COVID-19 is destroying health insurers bottom lines…isn’t it? Not according to a recent article by Kaiser Health News. Because of the quarantine, many individuals are delaying or foregoing elective surgeries. Of course, the costs…