Hostname: page-component-78c5997874-t5tsf Total loading time: 0 Render date: 2024-11-15T01:51:13.149Z Has data issue: false hasContentIssue false
  • English
  • Français

The case for risk-based premiums in public health insurance

Published online by Cambridge University Press:  23 March 2006

Peter Zweifel  and
Michael Breuer
Peter Zweifel
Affiliation:
Socioeconomic Institute of the University of Zurich, Switzerland
Michael Breuer
Affiliation:
Socioeconomic Institute of the University of Zurich, Switzerland
Get access Rights & Permissions [Opens in a new window]

Abstract

Uniform, risk-independent insurance premiums are accepted as part of ‘managed competition’ in health care. However, they are not compatible with optimality of health insurance contracts in the presence of both ex ante and ex post moral hazard. They have adverse effects on insurer behaviour even if risk adjustment is taken into account. Risk-based premiums combined with means-tested, tax-financed transfers are advocated as an alternative.

Type
Debate
Information
Health Economics, Policy and Law , Volume 1 , Issue 2 , April 2006 , pp. 171 - 188
Copyright
Cambridge University Press 2006

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)