Abstract:
:We investigate risk selection between public and private health insurance in Germany. With risk-rated premiums in the private system and community-rated premiums in the public system, advantageous selection in favor of private insurers is expected. Using 2000 to 2007 data from the German Socio-Economic Panel Study (SOEP), we find such selection. While private insurers are unable to select the healthy upon enrollment, they profit from an increase in the probability to switch from private to public health insurance of those individuals who have experienced a negative health shock. To avoid distorted competition between the two branches of health care financing, risk-adjusted transfers from private to public insurers should be instituted.
journal_name
Health Econjournal_title
Health economicsauthors
Grunow M,Nuscheler Rdoi
10.1002/hec.2942subject
Has Abstractpub_date
2014-06-01 00:00:00pages
670-87issue
6eissn
1057-9230issn
1099-1050journal_volume
23pub_type
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