Data on Healthcare Economics Reported by Rudy Douven and Colleagues (Should administrative costs in health insurance be included in the risk-equalization? An analysis of five countries): Economics – Healthcare Economics

2022 FEB 18 (NewsRx) -- By a News Reporter-Staff News Editor at Insurance Daily News -- New research on Economics - Healthcare Economics is the subject of a report. According to news reporting out of Hague, Netherlands, by NewsRx editors, research stated, “Most countries that apply risk-equalization in their health insurance market(s) perform risk-equalization on medical claims but do not include other components of the insurance premium, such as administrative costs. Using fixed effects panel regressions from individual insurers in Australia, Germany, the Netherlands, Switzerland, and the US, we find evidence that health insurers with a high morbidity population on average have higher administrative costs.”

Our news journalists obtained a quote from the research, “We argue that administrative costs should also be included in risk-equalization and we show that such equalization results in additional equalization payments nontrivial in size. Using examples from Germany and the US, we show how in practice policymakers can include administrative costs in risk-equalization.”

According to the news editors, the research concluded: “We are skeptical about applying risk-equalization to other components of the insurance premium, such as profits or costs related to solvency requirements of insurers.”

This research has been peer-reviewed.

For more information on this research see: Should administrative costs in health insurance be included in the risk-equalization? An analysis of five countries. The European Journal of Health Economics, 2022. The European Journal of Health Economics can be contacted at: Springer, One New York Plaza, Suite 4600, New York, Ny, United States.

Our news journalists report that additional information may be obtained by contacting Rudy Douven, CPB Netherlands Bureau for Economic Policy Analysis, Hague, Netherlands. Additional authors for this research include Lukas Kauer, Sylvia Demme, Francesco Paolucci, Wynand van de Ven, Jurgen Wasem and Xiaoxi Zhao.

The direct object identifier (DOI) for that additional information is: https://doi.org/10.1007/s10198-022-01436-y. 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.

Publisher contact information for the The European Journal of Health Economics is: Springer, One New York Plaza, Suite 4600, New York, Ny, United States.

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