Public coverage of dental care: universal or targeted?

Kurt Brekke (), Odd Rune Straume and Luigi Siciliani ()
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Luigi Siciliani: Dept. of Economics and Related Studies, University of York, Postal: University of York, Department of Economics and Related Studies, York YO10 5DD, United Kingdom, https://sites.google.com/a/york.ac.uk/luigi-siciliani/home

No 2/2025, Discussion Paper Series in Economics from Norwegian School of Economics, Department of Economics

Abstract: This paper analyses the impact of public dental care coverage-universal versus targeted-on access, pricing, and public spending in a model with two competing dental practices and heterogeneous patient income groups. We evaluate two types of reimbursement schemes: fixed subsidies and cost sharing. Our findings show that public coverage improves access for low-income patients but increases producer prices due to reduced price elasticity of de-mand. Targeted coverage provides greater access at lower public cost compared to universal coverage, especially under cost-sharing schemes. With fixed subsidies, both schemes achieve similar access, but targeted coverage remains more cost-efficient. The policy that maximises utilitarian welfare is targeted coverage with a fixed subsidy, balancing improved access for low-income patients against higher prices for high-income patients. This trade-off highlights challenges in implementing targeted policies but provides insights for designing efficient and equitable public dental care systems.

Keywords: Dental care; Public coverage; Reimbursement schemes (search for similar items in EconPapers)
JEL-codes: H51 I11 I18 L13 (search for similar items in EconPapers)
Pages: 49 pages
Date: 2025-01-27
New Economics Papers: this item is included in nep-hea
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Working Paper: Public coverage of dental care: universal or targeted? (2025)
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