[Ed. Note: On Friday, May 2 and Saturday, May 3, 2014, the Petrie-Flom Center hosted its 2014 annual conference: “Behavioral Economics, Law, and Health Policy.” This is an installment in our series of live blog posts from the event; video will be available later in the summer on our website.]
Our third panel, moderated by PFC Academic Fellow Matthew Lawrence, addresses the use of behavioral economics techniques to control health care costs. Speakers are Christopher T. Robertson, Brigitte Madrian, Ameet Sarpatwari, Anupam Jena, and Jim Hawkins. (Many projects are co-authored, but I’m only listing the presenters here)
The first speaker is Professor Christopher T. Robertson, coming from Arizona Law but visiting Harvard and the PFC this year, speaking on Cost-Sharing as Choice Architecture. He starts by talking about the cost side of cost sharing, which we know works in reducing consumption from empirical evidence; from the RAND study, it reduced use without reducing health. More recent studies also confirm this. But cost sharing presents four problems:
- Underinsurance relative to ability to pay
- Indiscriminate reductions in health care (more of an ax than a scalpel)
- An unfair tax on sickness (more tentative if we can solve the first two)
- The burden of deciding.
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