Abstract：
:Reform proposals of health care systems in several countries have advocated variations of a risk adjustment/capitation system. These proposals face a serious objection: incentives to risk selection are prevalent in the system. By now, considerable literature has been devoted to finding ways of mitigating, if not eliminating, this problem, while at the same time preserving incentives to efficiency. We contribute to this debate presenting a transfer system that, under some circumstances, attains both provider efficiency and no risk selection. The transfer system extends typical linear payment systems. It can be interpreted as a fixed transfer in the beginning of the period plus an ex-post fund at the end of the period. The novelty rests in the way contributions to this fund are defined.
journal_name
J Health Econjournal_title
Journal of health economicsauthors
Barros PPdoi
10.1016/S0167-6296(02)00119-4subject
Has Abstractpub_date
2003-05-01 00:00:00pages
419-43issue
3eissn
0167-6296issn
1879-1646pii
S0167-6296(02)00119-4journal_volume
22pub_type
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