Do health plans risk-select? An audit study on Germany's Social Health Insurance
AbstractThis paper evaluates whether health plans in Germany's Social Health Insurance select on an easily observable predictor of risk: geography. To identify plan behavior separately from concurrent demand-side adverse selection, I implement a double-blind audit study in which plans are contacted by fictitious applicants from different locations. I find that plans are less likely to respond and follow-up with applicants from higher-cost regions, such as West Germany. The results suggest that supply-side selection may emerge even in heavily regulated insurance markets. The prospect of risk selection by firms has implications for studies of demand-side selection and regulatory policy in these settings.
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Bibliographic InfoArticle provided by Elsevier in its journal Journal of Public Economics.
Volume (Year): 96 (2012)
Issue (Month): 9-10 ()
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Web page: http://www.elsevier.com/locate/inca/505578
Health insurance; Risk selection; Risk adjustment; Geographic variations; Germany;
Find related papers by JEL classification:
- H5 - Public Economics - - National Government Expenditures and Related Policies
- I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health
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