Exit, Voice, or Loyalty? An Investigation Into Mandated Portability of Front‐Loaded Private Health Plans

Juan Pablo Atal, Hanming Fang, Martin Karlsson and Nicolas Ziebarth ()

Journal of Risk & Insurance, 2019, vol. 86, issue 3, 697-727

Abstract: We study theoretically and empirically how consumers in an individual private long‐term health insurance market with front‐loaded contracts respond to a newly mandated portability requirement of their old‐age provisions. To foster competition, effective 2009, the German legislature made the portability of standardized old‐age provisions mandatory. Our theoretical model predicts that the portability reform will increase internal plan switching. However, under plausible assumptions, it will not increase external insurer switching. Moreover, the portability reform will enable unhealthier enrollees to reoptimize their plans. We find confirmatory evidence for the theoretical predictions using claims panel data from a big private insurer.

Date: 2019
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Citations: View citations in EconPapers (8)

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https://doi.org/10.1111/jori.12233

Related works:
Working Paper: Exit, Voice or Loyalty? An Investigation into Mandated Portability of Front-Loaded Private Health Plans (2017)
Working Paper: Exit, Voice or Loyalty? An Investigation into Mandated Portability of Front-Loaded Private Health Plans (2017)
Working Paper: Exit, Voice or Loyalty? An Investigation into Mandated Portability of Front-Loaded Private Health Plans (2017)
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Persistent link: https://EconPapers.repec.org/RePEc:bla:jrinsu:v:86:y:2019:i:3:p:697-727

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