A Simple Model of Health Insurance Competition
AbstractThis paper investigates competition between health insurance companies under different financing regulations. We consider two alternatives advanced in recent German health care reform discussions: competition by contribution rates (health contributions) and by fees (health premia). We find that contribution rate competition yields lower company profits and higher consumer welfare than premia competition when switching between insurance companies is costly. --
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Bibliographic InfoArticle provided by Verein für Socialpolitik in its journal German Economic Review.
Volume (Year): 14 (2013)
Issue (Month): 4 (November)
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Other versions of this item:
- Alexander Kemnitz, 2010. "A Simple Model of Health Insurance Competition," CESifo Working Paper Series 3220, CESifo Group Munich.
- Kemnitz, Alexander, 2010. "A simple model of health insurance competition," Dresden Discussion Paper Series in Economics 09/10, Dresden University of Technology, Faculty of Business and Economics, Department of Economics.
- I11 - Health, Education, and Welfare - - Health - - - Analysis of Health Care Markets
- I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health
- D43 - Microeconomics - - Market Structure and Pricing - - - Oligopoly and Other Forms of Market Imperfection
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