New Managed Care Study Findings Have Been Reported by Researchers at University of Pennsylvania (German Long-term Health Insurance: Theory Meets Evidence): Managed Care

2025 JUN 03 (NewsRx) -- By a News Reporter-Staff News Editor at Insurance Daily News -- Investigators publish new report on Managed Care. According to news originating from Philadelphia, Pennsylvania, by NewsRx correspondents, research stated, “German long-term health insurance (GLTHI) represents the largest market for private long-term health insurance contracts in the world.”

Our news journalists obtained a quote from the research from the University of Pennsylvania, “We show that GLTHI’s contract design coincides with the optimal dynamic contract for individuals with constant lifetime income profiles. After estimating the key ingredients of a life-cycle model, we find that, under a variety of assumptions, GLTHI achieves welfare that is at most 4% lower than for the optimal contract.”

According to the news editors, the research concluded: “Relative to the gains of replacing short-term contracts with either of the two long-term contracts, this welfare gap is smallest when reclassification risk is high.”

This research has been peer-reviewed.

For more information on this research see: German Long-term Health Insurance: Theory Meets Evidence. Journal of Political Economy, 2025. Journal of Political Economy can be contacted at: Univ Chicago Press, 1427 E 60TH St, Chicago, IL 60637-2954, USA. (University of Chicago Press - press.uchicago.edu; Journal of Political Economy - /ucp/journals/journal/jpe.html)

The news correspondents report that additional information may be obtained from Juan Pablo Atal, University of Pennsylvania, National Bureau of Economic Research, Philadelphia, PA 19104, United States. Additional authors for this research include Hanming Fang, Martin Karlsson and Nicolas R. Ziebarth.

The direct object identifier (DOI) for that additional information is: https://doi.org/10.1086/734781. 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.

(Our reports deliver fact-based news of research and discoveries from around the world.)