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Measuring customer preferences in the German statutory health insurance

Author

Listed:
  • Jonas B. Pendzialek

    (University of Cologne)

  • Dusan Simic

    (University of Cologne)

  • Stephanie Stock

    (University of Cologne)

Abstract

This paper investigates consumer preferences in the German statutory health insurance market. It further aims to test whether preferences differ by age and health status. Evidence is provided by a discrete choice experiment conducted in 2014 using the six most important attributes in sickness fund competition and ten random generated choice sets per participant. Price is found to be the most important attribute followed by additional benefits, managed care programmes, and distance to nearest branch. Other positive attributes of sickness funds are found to balance out a higher price, which would allow a sickness fund to position itself as high quality. However, significant differences in preferences were found between age and health status group. In particular, compromised health is associated with higher preference for illness-related additional benefits and less distance to the lowest branch, but lower preference for a lower price. Based on these differences, a distinct sickness fund offer could be constructed that would allow passive risk selection.

Suggested Citation

  • Jonas B. Pendzialek & Dusan Simic & Stephanie Stock, 2017. "Measuring customer preferences in the German statutory health insurance," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 18(7), pages 831-845, September.
    • Handle: RePEc:spr:eujhec:v:18:y:2017:i:7:d:10.1007_s10198-016-0829-7
    DOI: 10.1007/s10198-016-0829-7
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    References listed on IDEAS

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    Cited by:

    1. Christian Bührer & Stefan Fetzer & Christian Hagist, 2018. "Adverse Selection in the German Health Insurance System – The Case of Civil Servants," WHU Working Paper Series - Economics Group 18-06, WHU - Otto Beisheim School of Management.
    2. Vaidya, Shalvaree, 2021. "The impact of premium subsidies on health plan choices in Switzerland: Who responds to the incentives set by in-kind as opposed to cash transfers?," Health Policy, Elsevier, vol. 125(6), pages 675-684.
    3. Bührer, Christian & Fetzer, Stefan & Hagist, Christian, 2020. "Adverse selection in the German Health Insurance System – the case of civil servants," Health Policy, Elsevier, vol. 124(8), pages 888-894.
    4. Albrecht, Martin, 2018. "Potenziale für mehr Wettbewerb im Gesundheitswesen: Expertise," Working Papers 05/2018, German Council of Economic Experts / Sachverständigenrat zur Begutachtung der gesamtwirtschaftlichen Entwicklung.

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