Regulated competition in health insurance markets

Rudy Douven ()
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Rudy Douven: CPB Netherlands Bureau for Economic Policy Analysis

No 171, CPB Research Memorandum from CPB Netherlands Bureau for Economic Policy Analysis

Abstract: The efficient delivery of medical services may be pursued by intensifying competition among health care insurers. This paper develops a model of regulated competition among health care insurers. It shows that increasing competition may foster efficiency-raising activities, reduce insurer profits and lower health care costs. However, it may also increase the variability of consumer premiums and increase risk-type specific selection activities by insurers as the government will generally lack information on the risk characteristics of the insured.

JEL-codes: D8 I11 I18 (search for similar items in EconPapers)
Date: 2000-11
New Economics Papers: this item is included in nep-ias, nep-mic and nep-reg
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Persistent link: https://EconPapers.repec.org/RePEc:cpb:resmem:171

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