Does health insurance impede trade in health care services?

By: Contributor(s): Material type: TextTextSeries: Policy Research Working Paper, No. 3667Publication details: Washington, D.C. World Bank 2005 Description: 35 pSubject(s): DDC classification:
  • 368.38
Summary: There is limited trade in health services despite big differences in the price of health care across countries. Whether patients travel abroad for health care depends on the coverage of treatments by their health insurance plan. Under existing health insurance contracts, the gains from trade are not fully internalized by the consumer. The result is a strong ""local-market bias"" in the consumption of health care. A simple modification of existing insurance products can create sufficient incentives for consumers to travel. For just 15 highly tradable, low-risk treatments, the annual savings to the United States would be
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Item type Current library Item location Shelving location Call number Status Date due Barcode
Books Vikram Sarabhai Library Rack 26-A / Slot 1202 (0 Floor, East Wing) General Stacks 368.38 M2D6 (Browse shelf(Opens below)) Available 162326

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There is limited trade in health services despite big differences in the price of health care across countries. Whether patients travel abroad for health care depends on the coverage of treatments by their health insurance plan. Under existing health insurance contracts, the gains from trade are not fully internalized by the consumer. The result is a strong ""local-market bias"" in the consumption of health care. A simple modification of existing insurance products can create sufficient incentives for consumers to travel. For just 15 highly tradable, low-risk treatments, the annual savings to the United States would be

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