Genetic Health Risks: The Case for Universal Public Health Insurance

Vicky Barham (), Rose Anne Devlin and Olga Milliken ()
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Vicky Barham: Department of Economics, University of Ottawa, Ottawa, ON
Olga Milliken: Department of Economics, University of Ottawa, Ottawa, ON

No 1605E, Working Papers from University of Ottawa, Department of Economics

Abstract: This paper examines the role of the public sector in providing genetic insurance and health care when health risks are genetically determined at conception. We characterize the ex ante efficient outcome (where individuals are placed behind the veil of ignorance), and demonstrate that this outcome cannot be achieved by private health insurance markets or by a government which cannot commit to a once-and-for-all transfer policy. In contrast, the desired outcome can be attained through public provision of universal health (genetic) insurance and of genetic testing, coupled with a public pension scheme.

Keywords: Public health insurance; Genetic insurance; Genetic testing; Ex ante efficiency; Time inconsistent policy (search for similar items in EconPapers)
JEL-codes: G22 H51 I18 (search for similar items in EconPapers)
Pages: 28 pages
Date: 2016
New Economics Papers: this item is included in nep-age, nep-hea and nep-ias
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