Risk equalization in competitive health insurance markets: Identifying healthy individuals on the basis of multiple-year low spending.

ABSTRACT:

Objective

To study the extent to which risk equalization (RE) in competitive health insurance markets can be improved by including an indicator for being healthy.

Study setting/data sources

This study is conducted in the context of the Dutch individual health insurance market. Administrative data on spending and risk characteristics (2011-2014) for the entire population (N = 16.6 m) as well as health survey data from a large sample (N = 387 k) are used.

Study design

The indicator for being healthy is low spending in three consecutive prior years. "Low spending" is defined in three ways: belonging to the bottom 60%, 70%, or 80% of the annual spending distribution. Versions of the Dutch RE model 2017 with and without the indicator are compared on individual-level paymen

SUBMITTER: Eijkenaar F 

PROVIDER: S-EPMC6407341 | biostudies-literature | 2019 Apr

REPOSITORIES: biostudies-literature