Consumer information surplus and adverse selection in competitive health insurance markets: an empirical study
Article Abstract:
Recent studies have shown that the existence of a consumer information surplus in the health insurance market could lead to adverse selection, which may be defined as the tendency of high risk to buy insurance or to avail of a wider insurance coverage than low risks. However, the same studies, indicate that consumer information surplus can be avoided by health insurance firms by using better health indicators and providing consumers with a choice whether to take a deductible for a one- or two-year health insurance contract with otherwise identical benefits.
Publication Name: Journal of Health Economics
Subject: Health care industry
ISSN: 0167-6296
Year: 1995
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Mandatory high-risk pooling: an approach to reducing incentives for cream skimming
Article Abstract:
The Mandatory High-Risk Pooling (MHRP) system being proposed to promote efficiency and cost-effectivity among Dutch insurers distributes the risk associated with a pooled set of insured members. The costs for covering these members would then be subsidized by the Netherlands government. MHRP was proposed to avoid the way insurers' tried to maintain their profitability by choosing members according to preferred risks and to maximize the benefits they could gain under the country's risk-adjusted capitation payment system.
Publication Name: Inquiry
Subject: Health care industry
ISSN: 0046-9580
Year: 1996
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The effect of price on switching among health plans
Article Abstract:
Individual health plan clients who face less than $10 worth of premium payment increases were found to be approximately five times as likely to move to other health plans compared to customers of health plans with constant premium payments . Clients are found to be responsive to increases in health plan premiums by moving to other less-costly plans under an appropriately structured choice settings. Health plan pricing is also found to be a big factor in controlling health costs.
Publication Name: Journal of Health Economics
Subject: Health care industry
ISSN: 0167-6296
Year: 1997
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