Medicine Worse than the Malady: Cure Rates, Population Shifts, and Health Insurance

Robert F. Graboyes
2000 Social Science Research Network  
We examine the welfare effects of the interaction of three types of technological progress in medicine and health insurance; some paradoxes emerge. The model specifies three types of people: W (well); H (sick with high cure rate κ H if treated); and L (sick with low cure rate κ L if treated); they comprise proportions π W , π H , π L of the population. There are four insurance modes: Indemnity (
doi:10.2139/ssrn.2126775 fatcat:xtxd2xfjzneszlaafh3yxsgsq4