iHEA http://www.healtheconomics.org/ Copyright 2012 Wed, 02 May 2012 08:37:39 -0800 http://www.movabletype.org/?v=3.38 http://blogs.law.harvard.edu/tech/rss Arrow Award Honors Research on Search Frictions in Health Insurance The 20th Arrow Award for the best paper in health economics is awarded to Randall Cebul, James Rebitzer, Lowell Taylor, and Mark Votruba for their paper “Unhealthy Insurance Markets: Search Frictions and the Cost and Quality of Health Insurance,” AER 101(5): 1842-1871, 2011.

They use search frictions, caused by the great complexity in shopping for a multi-attribute service, to explain several well-known features of the small-employer health insurance market. Their theoretical model shows why search frictions create an equilibrium distribution of premiums (not just one price), why there is a high turnover rate, and why insurance companies spend lavishly on marketing. Their empirical work supports the predictions of their model. Cebul and colleagues discuss two policy issues. They find that the excessive turnover creates incentives for insurers to under-invest in the long-run health of their chronically-ill insured population, leading to low insurance quality. They also argue that a public insurance option that competes with private plans can reduce distortions caused by frictions.

In sum, the Arrow Award Committee is proud to honor the authors of this important, innovative, and policy-relevant paper. iHEA will present the Arrow Award to the authors during a brief ceremony at the AEA meetings in January, 2013.

Edward Norton, Andrew Jones
Co-Chairs, Arrow Award Committee

]]> http://www.healtheconomics.org/arrow-award-hon/ http://www.healtheconomics.org/arrow-award-hon/ Wed, 02 May 2012 08:37:39 -0800 Affiliate Associations iHEA has established a program to develop relationships with other national, regional and thematic health economics associations. Affiliates are given a link on the main iHEA web page and their members receive a discount on their iHEA individual memberships. If you are interested in Affiliate status for your association, please contact Bill Swan.

Current Affiliates:

]]> http://www.healtheconomics.org/ihea/ihea-affiliate/ http://www.healtheconomics.org/ihea/ihea-affiliate/ iHEA Thu, 05 Nov 2009 09:23:15 -0800