This paper purports to explain the pricing policy of pharmaceutical companies in Germany prior and after the introduction of reference prices (RP) in 1989. First, the threat of such regulation may have kept prices finite despite a completely insured market. Next, the pricing policies of both the...

In the EU the organization and financing of health care belong to the domain of authority of national governments. The program El 12 is an exception to this rule, permitting EU citizens to apply for medical treatment in another EU country, to be paid for by domestic social security. In spite of...

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Consumer incentives are reflected in a wide range of choices, many of which occur in both insurance- and tax-financed health care systems. However, health insurance and sick leave pay cause consumer incentives to be reflected in moral hazard effects of several types. Theoretically, ex ante moral...

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