Scandinavian Working Papers in Economics

Discussion Paper Series in Economics,
Norwegian School of Economics, Department of Economics

No 2/2025: Public coverage of dental care: universal or targeted?

Kurt R. Brekke (), Odd Rune Straume () and Luigi Siciliani ()
Additional contact information
Kurt R. Brekke: Dept. of Economics, Norwegian School of Economics and Business Administration, Postal: NHH, Department of Economics, Helleveien 30, N-5045 Bergen, Norway
Odd Rune Straume: Dept. of Economics, University of Minho, Postal: School of Economics, Management and Political Science, University of Minho, Department of Economics, 4710-057 Braga, Portugal
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

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

JEL-codes: H51; I11; I18; L13

Language: English

49 pages, January 27, 2025

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