Selection on moral hazard in the Swiss market for mandatory health insurance: Empirical evidence from Swiss Household Panel data

Igor Francetic

Health, Econometrics and Data Group (HEDG) Working Papers from HEDG, c/o Department of Economics, University of York

Abstract: Selection on moral hazard represents the tendency to select a specific health insurance coverage depending on the heterogeneity in utilization “slopes†. I explore the extent of selection on moral hazard in the Swiss managed competition system. I use data from the Swiss Household Panel and from publicly available regulatory data. I estimate a Roy-type model to obtain responses in (log) doctor visits at lowest and highest deductible levels. I also explore an instrumental variable approach comparing responses of individuals switching deductible to those maintaining the same level of coverage. Individuals with high propensity to select the highest deductible respond to coverage between two and three times more compared to the average difference in utilisation at highest vs. any lower deductible. This is consistent with individuals who are more likely to select a more comprehensive coverage using substantially more healthcare compared to what is implied by simple adverse selection.

Keywords: health insurance; moral hazard; adverse selection; cost sharing; Switzerland (search for similar items in EconPapers)
JEL-codes: I13 (search for similar items in EconPapers)
Date: 2022-08
New Economics Papers: this item is included in nep-eur
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Working Paper: Selection on moral hazard in the Swiss market for mandatory health insurance: Empirical evidence from Swiss Household Panel data (2023)
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Persistent link: https://EconPapers.repec.org/RePEc:yor:hectdg:22/24

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