Sources of advantageous selection: Evidence using actual health expenditure risk

Meliyanni Johar and Elizabeth Savage ()

Economics Letters, 2012, vol. 116, issue 3, 579-582

Abstract: In a market where insurers are not allowed to risk rate, we find evidence of advantageous selection using observed health expenditure risk. Selection is driven by income and optimism about the future. This may explain insurers’ profitability, despite community rating.

Keywords: Health insurance; Health expenditure risk; Adverse selection (search for similar items in EconPapers)
JEL-codes: I1 (search for similar items in EconPapers)
Date: 2012
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Citations: View citations in EconPapers (7)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecolet:v:116:y:2012:i:3:p:579-582

DOI: 10.1016/j.econlet.2012.06.002

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