I study the use of risk adjusters as a regulatory instrument for combatting cream-skimming incentives in a private health insurance market. It is assumed that insurance coverage is mandatory for all individuals, and that insurers must charge community-rated premiums - i.e., premiums independent of an individual's idiosyncratic risks.
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Paper provided by Australian National University - Department of Economics in its series Papers with number
336.
Length: 36 pages Date of creation: 1998 Date of revision: Handle: RePEc:fth:aunaec:336
Contact details of provider: Postal: THE AUSTRALIAN NATIONAL UNIVERSITY, DEPARTMENT OF ECONOMICS, RESEARCH SCHOOL of PACIFIC STUDIES, RESEARCH SCHOOL OF SOCIAL SCIENCES, G.P.O. 4, CANBERRA ACT 2601 AUSTRALIA..O. BOX 4 CANBERRA 2601 AUSTRALIA. Web page: http://economics.anu.edu.au/economics.htm More information through EDIRC
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