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Genetic adverse selection: Evidence from long-term care insurance and Huntington disease

  • Oster, Emily
  • Shoulson, Ira
  • Quaid, Kimberly
  • Dorsey, E. Ray

Individual, personalized genetic information is increasingly available, leading to the possibility of greater adverse selection over time, particularly in individual-payer insurance markets. We use data on individuals at risk for Huntington disease (HD), a degenerative neurological disorder with significant effects on morbidity, to estimate adverse selection in long-term care insurance. We find strong evidence of adverse selection: individuals who carry the HD genetic mutation are up to 5 times as likely as the general population to own long-term care insurance. This finding is supported both by comparing individuals at risk for HD to those in the general population and by comparing across tested individuals in the HD-risk population with and without the HD mutation.

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Article provided by Elsevier in its journal Journal of Public Economics.

Volume (Year): 94 (2010)
Issue (Month): 11-12 (December)
Pages: 1041-1050

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Handle: RePEc:eee:pubeco:v:94:y:2010:i:11-12:p:1041-1050
Contact details of provider: Web page: http://www.elsevier.com/locate/inca/505578

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