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Private Supplementary Health Insurance: Retirees' Demand

Author

Listed:
  • Carine Franc

    (CERMES, Inserm U750, CNRS UMR8169, EHESS, 7 rue Guy Môquet, Villejuif 94801, France.)

  • Marc Perronnin

    (IRDES, 10 rue Vauvenargues, Paris 75018, France. E-mails: perronnin@irdes.fr, pierre@irdes.fr)

  • Aurélie Pierre

    (IRDES, 10 rue Vauvenargues, Paris 75018, France. E-mails: perronnin@irdes.fr, pierre@irdes.fr)

Abstract

In France, about 90 per cent of the population is covered by private health insurance that supplements public health insurance. More than half of policyholders obtain their coverage through their employer. Considering the financial benefits associated with group contracts compared to individual contracts, we assume that switching behaviours vary among different beneficiaries during the transition to retirement. The gap in premiums at retirement between group and individual contracts gives the opportunity to study the marginal price effect on switching behaviours. In this study, we consider the nature of the contract prior to retirement (compulsory or voluntary membership group contract and individual contract) as an indirect measure of the price effect. We show the significance of this price effect as policyholders formerly enrolled in group contracts switch much more frequently than those formerly covered by an individual contract. We also discuss other determinants of the decision to switch private supplementary health insurance. The Geneva Papers (2008) 33, 610–626. doi:10.1057/gpp.2008.31

Suggested Citation

  • Carine Franc & Marc Perronnin & Aurélie Pierre, 2008. "Private Supplementary Health Insurance: Retirees' Demand," The Geneva Papers on Risk and Insurance - Issues and Practice, Palgrave Macmillan;The Geneva Association, vol. 33(4), pages 610-626, October.
    • Handle: RePEc:pal:gpprii:v:33:y:2008:i:4:p:610-626
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    References listed on IDEAS

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    1. Marquis, M Susan & Phelps, Charles E, 1987. "Price Elasticity and Adverse Selection in the Demand for Supplementary Health Insurance," Economic Inquiry, Western Economic Association International, vol. 25(2), pages 299-313, April.
    2. Samuelson, William & Zeckhauser, Richard, 1988. "Status Quo Bias in Decision Making," Journal of Risk and Uncertainty, Springer, vol. 1(1), pages 7-59, March.
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    Cited by:

    1. Monique Kerleau & Anne Fretel & Isabelle Hirtzlin, 2009. "Regulating Private Health Insurance in France : New Challenges for Employer-Based Complementary Health Insurance," Post-Print halshs-00423931, HAL.
    2. Or, Zeynep & Cases, Chantal & Lisac, Melanie & Vrangbæk, Karsten & Winblad, Ulrika & Bevan, Gwyn, 2010. "Are health problems systemic? Politics of access and choice under Beveridge and Bismarck systems," Health Economics, Policy and Law, Cambridge University Press, vol. 5(3), pages 269-293, July.

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    More about this item

    JEL classification:

    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • G22 - Financial Economics - - Financial Institutions and Services - - - Insurance; Insurance Companies; Actuarial Studies
    • I19 - Health, Education, and Welfare - - Health - - - Other

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