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A new prevention paradox: The trade-off between reducing incentives for risk selection and increasing the incentives for prevention for health insurers

Author

Listed:
  • Kanters, Tim A.
  • Brouwer, Werner B.F.
  • van Vliet, René C.J.A.
  • van Baal, Pieter H.M.
  • Polder, Johan J.

Abstract

The Dutch risk equalization scheme has been improved over the years by including health related risk adjusters. The purpose of the Dutch risk equalization scheme is to prevent risk selection and to correct for predictable losses and gains for insurers. The objective of this paper is to explore the financial incentives for risk selection under the Dutch risk equalization scheme.

Suggested Citation

  • Kanters, Tim A. & Brouwer, Werner B.F. & van Vliet, René C.J.A. & van Baal, Pieter H.M. & Polder, Johan J., 2013. "A new prevention paradox: The trade-off between reducing incentives for risk selection and increasing the incentives for prevention for health insurers," Social Science & Medicine, Elsevier, vol. 76(C), pages 150-158.
  • Handle: RePEc:eee:socmed:v:76:y:2013:i:c:p:150-158
    DOI: 10.1016/j.socscimed.2012.10.019
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    References listed on IDEAS

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    1. van de Ven, Wynand P.M.M. & Beck, Konstantin & Van de Voorde, Carine & Wasem, Jurgen & Zmora, Irit, 2007. "Risk adjustment and risk selection in Europe: 6 years later," Health Policy, Elsevier, vol. 83(2-3), pages 162-179, October.
    2. Glazer, Jacob & McGuire, Thomas G., 2002. "Setting health plan premiums to ensure efficient quality in health care: minimum variance optimal risk adjustment," Journal of Public Economics, Elsevier, vol. 84(2), pages 153-173, May.
    3. Pieter H. M. van Baal & Talitha L. Feenstra & Johan J. Polder & Rudolf T. Hoogenveen & Werner B. F. Brouwer, 2011. "Economic evaluation and the postponement of health care costs," Health Economics, John Wiley & Sons, Ltd., vol. 20(4), pages 432-445, April.
    4. Hans Maarse & Yvette Bartholomée, 2007. "A public–private analysis of the new Dutch health insurance system," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 8(1), pages 77-82, March.
    5. Pieter H. M. van Baal & Talitha L. Feenstra & Rudolf T. Hoogenveen & G. Ardine de Wit & Werner B. F. Brouwer, 2007. "Unrelated medical care in life years gained and the cost utility of primary prevention: in search of a 'perfect' cost-utility ratio," Health Economics, John Wiley & Sons, Ltd., vol. 16(4), pages 421-433.
    6. Heijink, Richard & Noethen, Manuela & Renaud, Thomas & Koopmanschap, Marc & Polder, Johan, 2008. "Cost of illness: An international comparison: Australia, Canada, France, Germany and The Netherlands," Health Policy, Elsevier, vol. 88(1), pages 49-61, October.
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