Health Care Management Papers

Document Type

Journal Article

Date of this Version

4-2012

Publication Source

JAMA (Journal of the American Medical Association)

Volume

307

Issue

13

Start Page

1375

Last Page

1376

DOI

10.1001/jama.2012.387

Abstract

Financial incentives abound in health care. They are found in the ways physicians are paid and in the ways health insurance coverage, co-payments, and deductibles are structured for patients. The effects of these incentives are often understood through conventional economic principles, with the assumption that individuals are self-interest maximizers who respond directly to changes in incentives. In contrast, behavioral economics imports insights from psychology and recognizes that individuals often do not respond to incentives as rationally as they might. In some cases, individuals lack information, but in others, they just seem to act contrary to their own known interests, for example, when they overeat, fail to take medication, or neglect to wear seat belts.

Copyright/Permission Statement

Copyright © 2012 American Medical Association

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Date Posted: 27 November 2017

This document has been peer reviewed.