Unbiased Analysis of Today's Healthcare Issues

Estimating the elasticity of health insurance offering for firms: Part II

How does the price of health insurance affect the probability that a firm will offer health insurance to their workers?  A previous post provides a variety of estimates of the elasticity of firm health insurance offering with respect to premiums.  A more recent article by Gruber and Lettau (2004) needs to be added to this […]

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How does changing medical prices affect patient demand?

Price elasticity estimates how consumer demand changes as prices change.  For instance, the price elasticity of medical service is defined as the percentage change in quantity of medical care demanded divided by the percentage change in price of the same commodity.  Most academics believe that the price elasticity for medical services is between 0 and […]

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Is health care demand elastic?

Most experts believe that health care demand is fairly inelastic. If you are sick, you will not be very price sensitive. There are exceptions to this rule (e.g., elective surgery such as plastic surgery, purchases of eyeglasses) but most studies find that patients are fairly insensitive to changes in health care prices. For instance, the […]

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