Innovation and risk selection in deregulated social health insurance.
One important motive for deregulating social health insurance is to encourage product innovation. For the first time, the cost savings achieved by non-US managed care plans that are attributable to product innovation are estimated, using a novel approach. Panel data from a major Swiss health insurer permits to infer health status, which can be used to predict health care expenditure. The econometric evidence suggests that the managed care plans benefit from risk selection effects. In the case of the health maintenance organization (HMO) plan, however, the pure innovation effect may account for as much as two-thirds of the cost advantage.
Lehmann
Hansjörg
H
Socioeconomic Institute, University of Zurich, Hottingerstrasse 10, CH-8032 Zurich, Switzerland.
Zweifel
Peter
P
D000206:Actuarial Analysis; D000328:Adult; D000368:Aged; D000369:Aged, 80 and over; D004465:Economic Competition; D005260:Female; D005102:Health Expenditures / Q000706:statistics & numerical data; D006302:Health Services Research; D006304:Health Status; D006801:Humans; D015273:Insurance Selection Bias; D008297:Male; D018854:Managed Competition / Q000191:economics* / Q000706:statistics & numerical data; D008875:Middle Aged; D017059:Models, Econometric; D009936:Organizational Innovation; D012943:Social Security / Q000191:economics*; D012946:Social Welfare / Q000191:economics*; D013557:Switzerland