Demand-side strategies to deal with moral hazard in public insurance for long-term care.

Abstract:

:Moral hazard in public insurance for long-term care may be counteracted by strategies influencing supply or demand. Demand-side strategies may target the patient or the insurer. Various demand-side strategies and how they are implemented in four European countries (Germany, Belgium, Switzerland and the Netherlands) are described, highlighting the pros and cons of each strategy. Patient-oriented strategies to counteract moral hazard are used in all four countries but their impact on efficiency is unclear and crucially depends on their design. Strategies targeted at insurers are much less popular: Belgium and Switzerland have introduced elements of managed competition for some types of long-term care, as has the Netherlands in 2015. As only some elements of managed competition have been introduced, it is unclear whether it improves efficiency. Its effect will depend on the feasibility of setting appropriate financial incentives for insurers using risk equalization and the willingness of governments to provide insurers with instruments to manage long-term care.

authors

Bakx P,Chernichovsky D,Paolucci F,Schokkaert E,Trottmann M,Wasem J,Schut F

doi

10.1177/1355819615575080

subject

Has Abstract

pub_date

2015-07-01 00:00:00

pages

170-6

issue

3

eissn

1355-8196

issn

1758-1060

pii

1355819615575080

journal_volume

20

pub_type

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