Findings from University of Paderborn in Healthcare Economics Provides New Insights (Ex-post moral hazard in the health insurance market: empirical evidence from German data)

Insurance Daily News

2019 AUG 23 (NewsRx) -- By a News Reporter-Staff News Editor at Insurance Daily News -- Data detailed on Economics - Healthcare Economics have been presented. According to news reporting out of Paderborn, Germany, by NewsRx editors, the research stated, “In this paper, I analyze whether premium refunds can reduce ex-post moral hazard behavior in the health insurance market. I do so by estimating the effect of these refunds on different measures of medical demand.”

Our news journalists obtained a quote from the research from the University of Paderborn, “I use panel data from German sickness funds that cover the years 2006-2010 and I estimate effects for the year 2010. Applying regression adjusted matching, I find that choosing a tariff that contains a premium refund is associated with a significant reduction in the probability of visiting a general practitioner. Furthermore, the probability of visiting a doctor due to a trivial ailment such as a common cold is reduced. Effects are mainly driven by younger (and, therefore, healthier) individuals, and they are stronger for men than for women. Medical expenditures for doctor visits are also reduced. I conclude that there is evidence that premium refunds are associated with a reduction in ex-post moral hazard. Robustness checks support these findings.”

According to the news editors, the research concluded: “Yet, using observable characteristics for matching and regression, it is never possible to completely eliminate a potentially remaining selection bias and results may not be interpreted in a causal manner.”

For more information on this research see: Ex-post moral hazard in the health insurance market: empirical evidence from German data. The European Journal of Health Economics, 2019;():. The European Journal of Health Economics can be contacted at: Springer, 233 Spring Street, New York, NY 10013, USA.

Our news journalists report that additional information may be obtained by contacting S. Thonnes, Dept. of Economics, University of Paderborn, Warburger Straße 100, 33098, Paderborn, Germany.

The direct object identifier (DOI) for that additional information is: https://doi.org/10.1007/s10198-019-01091-w. 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.