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Behavioral Economics Holds Potential To Deliver Better Results For Patients, Insurers, And Employers

Many programs being implemented by US employers, insurers, and health care providers use incentives to encourage patients to take better care of themselves. We critically review a range of these efforts and show that many programs, although well-meaning, are unlikely to have much impact because they require information, expertise, and self-control that few patients possess. As a result, benefits are likely to accrue disproportionately to patients who already are taking adequate care of their health. We show how these programs could be made more effective through the use of insights from behavioral economics. For example, incentive programs that offer patients small and frequent payments for behavior that would benefit the patients, such as medication adherence, can be more effective than programs with incentives that are far less visible because they are folded into a paycheck or used to reduce a monthly premium. Deploying more-nuanced insights from behavioral economics can lead to policies with the potential to increase patient engagement and deliver dividends for patients and favorable cost-effectiveness ratios for insurers, employers, and other relevant commercial entities.

Behavioral Economics Holds Potential To Deliver Better Results For Patients, Insurers, And Employers
George Loewenstein, David A. Asch and Kevin G. Volpp

http://dx.doi.org/10.1377/hlthaff.2012.1163 
Health Aff July 2013 vol. 32 no. 7 1244-1250

See on content.healthaffairs.org



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