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D esigning O ptional N o ‐F ault I nsurance P olicies for H ealth C are S ystems
Author(s) -
Sappington David E. M.
Publication year - 1994
Publication title -
journal of economics and management strategy
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.672
H-Index - 68
eISSN - 1530-9134
pISSN - 1058-6407
DOI - 10.1111/j.1430-9134.1994.00113.x
Subject(s) - subsidy , compensation (psychology) , legislation , psychology , political science , social psychology , law
Legislation to create optional no‐fault insurance (ONFL) programs has recently been enacted in Florida and Virginia. ONFI programs provide compensation to patients when certain medical complications arise, provided the patient agrees not to sue the doctor for additional damages. The optimal design of ONFI programs is explored in this paper, focusing on the incentive effects of ONFI programs. The question of whether ONFI programs should be funded entirely by participating doctors, or whether social subsidies are optimal, is examined.