Cost Sharing

Usually used to refer to a method of financing health care that involves some portion of the expenditure falling directly on the user. The cost is then shared

80 Cost Shifting between user and employer, government, taxpayer, insurance agency and so on. This is sometimes referred to as 'demand-side cost sharing'. It is viewed both as a means of deterring relatively 'trivial' consumption (and of course assumes a non-zero price-elasticity of demand) and as a means of enlarging the financial bases from which health services are financed. What is meant by 'trivial' is anyone's guess. The term 'supply-side cost sharing' is occasionally used to describe a situation where the provider receives from a third party payer less than the full costs of providing a given service.

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