Freeman Spogli Institute for International Studies Program on Energy and Sustainable Development Stanford University


Health Care Spending Risk, Health Insurance, and Payment to Health Plans

Journal Article

Friedrich Breyer
M. Kate Bundorf - Stanford University
Mark V. Pauly

Published by
Handbook of Health Economics, Vol. 2, page(s) 691-762


This chapter will deal with the actual and efficient functioning of health insurance in settings where risk (expected value) of medical spending or insurance benefits varies across individuals at a given point in time or over time for a given individual. It will deal with equilibrium in insurance markets with risk variation and will also deal with various configurations of information, the impacts on such markets of regulation motivated by risk variation, and the actual and optimal impact of governmental policies to deal with risk variation in national insurance systems. © 2012 Elsevier B.V.