Potential determinants of deductible uptake in health insurance: How to increase uptake in The Netherlands?
K. P. M. Winssen (vanwinssen@bmg.eur.nl),
R. C. Kleef and
W. P. M. M. Ven
Additional contact information
K. P. M. Winssen: Erasmus University Rotterdam
R. C. Kleef: Erasmus University Rotterdam
W. P. M. M. Ven: Erasmus University Rotterdam
The European Journal of Health Economics, 2016, vol. 17, issue 9, No 2, 1059-1072
Abstract:
Abstract In health insurance, voluntary deductibles are offered to the insured in return for a premium rebate. Previous research has shown that 11 % of the Dutch insured opted for a voluntary deductible (VD) in health insurance in 2014, while the highest VD level was financially profitable for almost 50 % of the population in retrospect. To explain this discrepancy, this paper identifies and discusses six potential determinants of the decision to opt for a VD from the behavioral economic literature: loss aversion, risk attitude, ambiguity aversion, debt aversion, omission bias, and liquidity constraints. Based on these determinants, five potential strategies are proposed to increase the number of insured opting for a VD. Presenting the VD as the default option and providing transparent information regarding the VD are the two most promising strategies. If, as a result of these strategies, more insured would opt for a VD, moral hazard would be reduced.
Keywords: Voluntary deductibles; Moral hazard; Health insurance; Behavioral economics; Prospect theory; Nudge theory (search for similar items in EconPapers)
JEL-codes: D03 D11 D81 I11 I13 (search for similar items in EconPapers)
Date: 2016
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Citations: View citations in EconPapers (14)
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Persistent link: https://EconPapers.repec.org/RePEc:spr:eujhec:v:17:y:2016:i:9:d:10.1007_s10198-015-0745-2
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DOI: 10.1007/s10198-015-0745-2
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