New Medical Research Findings from Erasmus University Discussed (Selection Incentives for Health Insurers In the Presence of Sophisticated Risk Adjustment)

2020 DEC 16 (NewsRx) -- By a News Reporter-Staff News Editor at Insurance Daily News -- A new study on Health and Medicine - Medical Research is now available. According to news reporting from Rotterdam, Netherlands, by NewsRx journalists, research stated, “This article analyzes selection incentives for insurers in the Dutch basic health insurance market, which operates with community-rated premiums and sophisticated risk adjustment. Selection incentives result from the interplay of three market characteristics: possible actions by insurers, consumer response to these actions, and predictable variation in profitability of insurance contracts.”

The news correspondents obtained a quote from the research from Erasmus University, “After a qualitative analysis of the first two characteristics our primary objective is to identify the third. Using a combination of claims data (N= 16.8 million) and survey information (N= 387,195), we find substantial predictable variation in profitability. On average, people in good health are profitable, while those in poor health are unprofitable.”

According to the news reporters, the research concluded: “Dutch insurers indeed face selection incentives. A complete measure of selection incentives, however, captures the correlation between individual-level profitability and consumer response to insurer-actions. Obtaining insight in this correlation is an important direction for further research.”

This research has been peer-reviewed.

For more information on this research see: Selection Incentives for Health Insurers In the Presence of Sophisticated Risk Adjustment. Medical Care Research and Review, 2020;77(6):584-595. Medical Care Research and Review can be contacted at: Sage Publications Inc, 2455 Teller Rd, Thousand Oaks, CA 91320, USA.

Our news journalists report that additional information may be obtained by contacting Richard C. van Kleef, Erasmus University, Rotterdam, Netherlands. Additional authors for this research include Frank Eijkenaar and Rene C. J. A. van Vliet.

The direct object identifier (DOI) for that additional information is: https://doi.org/10.1177/1077558719825982. 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.

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