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Differences in price elasticities of demand for health insurance: a systematic review

Listed author(s):
  • Jonas B. Pendzialek

    ()

    (University Hospital of Cologne)

  • Dusan Simic

    (University Hospital of Cologne)

  • Stephanie Stock

    (University Hospital of Cologne)

Registered author(s):

    Abstract Many health insurance systems apply managed competition principles to control costs and quality of health care. Besides other factors, managed competition relies on a sufficient price-elastic demand. This paper presents a systematic review of empirical studies on price elasticity of demand for health insurance. The objective was to identify the differing international ranges of price elasticity and to find socio-economic as well as setting-oriented factors that influence price elasticity. Relevant literature for the topic was identified through a two-step identification process including a systematic search in appropriate databases and further searches within the references of the results. A total of 45 studies from countries such as the USA, Germany, the Netherlands, and Switzerland were found. Clear differences in price elasticity by countries were identified. While empirical studies showed a range between −0.2 and −1.0 for optional primary health insurance in the US, higher price elasticities between −0.6 and −4.2 for Germany and around −2 for Switzerland were calculated for mandatory primary health insurance. Dutch studies found price elasticities below −0.5. In consideration of all relevant studies, age and poorer health status were identified to decrease price elasticity. Other socio-economic factors had an unclear impact or too limited evidence. Premium level, range of premiums, homogeneity of benefits/coverage and degree of forced decision were found to have a major influence on price elasticity in their settings. Further influence was found from supplementary insurance and premium-dependent employer contribution.

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    File URL: http://link.springer.com/10.1007/s10198-014-0650-0
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    Article provided by Springer & Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ) in its journal The European Journal of Health Economics.

    Volume (Year): 17 (2016)
    Issue (Month): 1 (January)
    Pages: 5-21

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    Handle: RePEc:spr:eujhec:v:17:y:2016:i:1:d:10.1007_s10198-014-0650-0
    DOI: 10.1007/s10198-014-0650-0
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    Universität Duisburg-Essen, Fakultät für Wirtschaftswissenschaften, Lehrstuhl für Volkswirtschaftslehre, insbesondere Quantitative Wirtschaftspolitik, Weststadttürme Berliner Platz 6-8, 45127 Essen

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    Web page: https://www.dggoe.de/
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    Order Information: Web: http://www.springer.com/medicine/health+informatics/journal/10198/PS2

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