Risk selection and complementary health insurance: The Swiss approach
AbstractTo avoid risk selection, the market for complementary health insurance is usually completely separate from the market for basic health insurance. In Switzerland, however, the basic benefit package and complementary insurance are offered by the same insurer. Risk-based premiums are allowed with respect to complementary insurance. This paper compares the Swiss integration approach to the separation approach. It is shown that under the integration approach insurers cream-skim by selling complementary insurance to low risks at a discount. Nevertheless, the integration approach can be Pareto-superior if the cost savings due to the integration of basic and complementary insurance are sufficiently large. Copyright Springer Science + Business Media, LLC 2006
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Bibliographic InfoArticle provided by Springer in its journal International Journal of Health Care Finance and Economics.
Volume (Year): 6 (2006)
Issue (Month): 2 (June)
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Web page: http://www.springerlink.com/link.asp?id=106603
Health insurance; Risk selection; Complementary insurance;
Other versions of this item:
- Kifmann, Mathias, 2005. "Risk Selection and Complementary Health Insurance: The Swiss Approach," Discussion Papers, Series I 328, University of Konstanz, Department of Economics.
- I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health
- H51 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Health
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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Economics Papers from University Paris Dauphine
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