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Does risk equalization reduce the viability of voluntary deductibles?
Theoretically, a risk avers consumer takes a deductible if the premium rebate (far) exceeds his/her expected out-of-pocket expenditures. In the absence of risk equalization, insurers are able to offer high rebates because those who select into a deductible plan have below-average expenses. This pape...
Autores principales: | , , , |
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Formato: | Texto |
Lenguaje: | English |
Publicado: |
Springer-Verlag
2007
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Materias: | |
Acceso en línea: | https://www.ncbi.nlm.nih.gov/pmc/articles/PMC2784522/ https://www.ncbi.nlm.nih.gov/pubmed/17431767 http://dx.doi.org/10.1007/s10754-007-9011-1 |
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author | van Kleef, R. C. Beck, K. van de Ven, W. P. M. M. van Vliet, R. C. J. A. |
author_facet | van Kleef, R. C. Beck, K. van de Ven, W. P. M. M. van Vliet, R. C. J. A. |
author_sort | van Kleef, R. C. |
collection | PubMed |
description | Theoretically, a risk avers consumer takes a deductible if the premium rebate (far) exceeds his/her expected out-of-pocket expenditures. In the absence of risk equalization, insurers are able to offer high rebates because those who select into a deductible plan have below-average expenses. This paper shows that, for high deductibles, such rebates cannot be offered if risk equalization would “perfectly” adjust for the effect of self selection. Since the main goal of user charges is to reduce moral hazard, some effect of self selection on the premium rebate can be justified to increase the viability of voluntary deductibles. |
format | Text |
id | pubmed-2784522 |
institution | National Center for Biotechnology Information |
language | English |
publishDate | 2007 |
publisher | Springer-Verlag |
record_format | MEDLINE/PubMed |
spelling | pubmed-27845222009-12-04 Does risk equalization reduce the viability of voluntary deductibles? van Kleef, R. C. Beck, K. van de Ven, W. P. M. M. van Vliet, R. C. J. A. Int J Health Care Finance Econ Article Theoretically, a risk avers consumer takes a deductible if the premium rebate (far) exceeds his/her expected out-of-pocket expenditures. In the absence of risk equalization, insurers are able to offer high rebates because those who select into a deductible plan have below-average expenses. This paper shows that, for high deductibles, such rebates cannot be offered if risk equalization would “perfectly” adjust for the effect of self selection. Since the main goal of user charges is to reduce moral hazard, some effect of self selection on the premium rebate can be justified to increase the viability of voluntary deductibles. Springer-Verlag 2007-04-13 2007-03 /pmc/articles/PMC2784522/ /pubmed/17431767 http://dx.doi.org/10.1007/s10754-007-9011-1 Text en © Springer Science+Business Media, LLC 2007 |
spellingShingle | Article van Kleef, R. C. Beck, K. van de Ven, W. P. M. M. van Vliet, R. C. J. A. Does risk equalization reduce the viability of voluntary deductibles? |
title | Does risk equalization reduce the viability of voluntary deductibles? |
title_full | Does risk equalization reduce the viability of voluntary deductibles? |
title_fullStr | Does risk equalization reduce the viability of voluntary deductibles? |
title_full_unstemmed | Does risk equalization reduce the viability of voluntary deductibles? |
title_short | Does risk equalization reduce the viability of voluntary deductibles? |
title_sort | does risk equalization reduce the viability of voluntary deductibles? |
topic | Article |
url | https://www.ncbi.nlm.nih.gov/pmc/articles/PMC2784522/ https://www.ncbi.nlm.nih.gov/pubmed/17431767 http://dx.doi.org/10.1007/s10754-007-9011-1 |
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