Martina Grunow, Robert Nuscheler
Public and Private Health Insurance in Germany:
The Ignored Risk Selection Problem
Abstract:
While risk selection within the German public health insurance system
has received considerable attention, risk selection between public and
private health insurers has largely been ignored. This is surprising
since – given the institutional structure – risk
selection between systems is likely to be more pronounced. We find
clear evidence for risk selection in favor of private insurers. While
private insurers are unable to select the healthy upon enrollment they
manage to dump high risk individuals who then end up in the public
system. This gives private insurers an unjustified competitive
advantage vis-à-vis public insurer. A risk adjusted
compensation would mitigate this advantage.
JEL: C13, C23, I10, I18
Paper:
Paper available as pdf-file.
Beitrag Nr. 312, Volkswirtschaftliche Diskussionsreihe, Institut
für
Volkswirtschaftslehre der Universität Augsburg
Contact:
Martina
Grunow, University of Augsburg, Department of Economics,
D-86135
Augsburg,
Germany, phone +49-821-598-4210, fax +49-821-598-4232
email: martina.grunow@wiwi.uni-augsburg.de
Robert
Nuscheler, University of Augsburg, Department of Economics,
D-86135
Augsburg,
Germany, phone +49-821-598-4202, fax +49-821-598-4232
email: robert.nuscheler@wiwi.uni-augsburg.de
Bo., 24.08.2010