Data from Toulouse School of Economics Advance Knowledge in Health Insurance (Supplemental health insurance in the Colombian managed care system:…

Data from Toulouse School of Economics Advance Knowledge in Health Insurance (Supplemental health insurance in the Colombian managed care system: Adverse or advantageous selection?)

By a News Reporter-Staff News Editor at Managed Care Weekly Digest -- Fresh data on Health Insurance are presented in a new report. According to news reporting originating from Toulouse, France, by NewsRx correspondents, research stated, "The aim of this article is to estimate the type of selection that exists in the supplemental health insurance market in Colombia where compulsory coverage is implemented through managed care competition. We build a panel database that combines individuals' information from the Ministry of Health and a database provided by two private health insurers."

Our news editors obtained a quote from the research from the Toulouse School of Economics, "We perform the correlation test for consumption of health services frequency and supplemental coverage. Following Fang et al. (2008), we condition the estimation on health controls that are available to the econometrician but not to insurers. In both cases we obtain a positive correlation, suggesting that adverse selection predominates. In order to rule out some moral hazard effects, we estimate the correlation between previous frequency of healthcare service consumption and supplemental insurance purchase. The positive correlation obtained is robust to the inclusion of controls for diagnosis implemented by health insurers, suggesting that despite some risk selection strategies, they are not protected from adverse selection."

According to the news editors, the research concluded: "We conclude that some subsidies to supplemental coverage purchase would lower public expenditure in Colombia."

For more information on this research see: Supplemental health insurance in the Colombian managed care system: Adverse or advantageous selection? Journal of Health Economics, 2017;56():317-329. Journal of Health Economics can be contacted at: Elsevier Science Bv, PO Box 211, 1000 Ae Amsterdam, Netherlands. (Elsevier - www.elsevier.com; Journal of Health Economics - www.journals.elsevier.com/journal-of-health-economics/)

The news editors report that additional information may be obtained by contacting D. Bardey, Toulouse Sch Econ, Toulouse, France (see also Health Insurance).

The direct object identifier (DOI) for that additional information is: https://doi.org/10.1016/j.jhealeco.2017.02.008. This DOI is a link to an online electronic document that is either free or for purchase, and can be your direct source for a journal article and its citation.

Keywords for this news article include: Toulouse, France, Europe, Health and Medicine, Health Insurance, Managed Care, Toulouse School of Economics.

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