Should physicians be permitted to 'balance bill' patients?

Jacob Glazer, Jacob Glazer, Thomas G. McGuire*

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

27 Scopus citations


This paper studies the efficiency effects of physician fees when the insurer (possibly the government) pays a fee for each procedure, and the doctor may supplement the fee by an extra charge to the patient, a practice known as 'balance billing.' Monopolistically competitive physicians can discriminate among patients on the basis of both price and quality. Equilibria with and without balance billing are compared. The paper analyzes and recommends a new fee policy, a form of payer 'fee discrimination.'.

Original languageEnglish
Pages (from-to)239-258
Number of pages20
JournalJournal of Health Economics
Issue number3
StatePublished - Oct 1993
Externally publishedYes


FundersFunder number
National Institute of Mental HealthK05MH000832


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