Reports from George Washington University Advance Knowledge in Insurance (Riding the Tiger: Managing Risk In Us Housing Finance and Health Insurance Welfare Markets): Insurance

Health Policy and Law Daily

2022 APR 25 (NewsRx) -- By a News Reporter-Staff News Editor at Health Policy and Law Daily -- Current study results on Insurance have been published. According to news originating from Washington, District of Columbia, by NewsRx correspondents, research stated, “This article examines the political and economic dynamics of welfare markets in the USA. These marketplaces differ from other public-private welfare arrangements in that the state crafts and sustains these markets with the aim of using competition to promote cost-effective welfare provision.”

Our news journalists obtained a quote from the research from George Washington University, “However, welfare markets face fundamental tensions between competition and stability that we trace to the allocation of risk between the state and private providers. Faced with the prospect of bearing potential losses, private firms often deploy instruments to reduce risk, lobby for risk protections from policymakers, or threaten to exit the market. The result is markets that are either non-competitive but stable, or competitive but unstable. In short, when policymakers create welfare markets they are riding a tiger, making themselves vulnerable to the functioning of markets over which they have imperfect control. We theorize and illustrate these dynamics through analyses of mortgage securitization, Medicare Advantage markets and the Obamacare health exchanges.”

According to the news editors, the research concluded: “This article contributes to the study of the US welfare state, speaks to the perils of marketized welfare in rich democracies and shows how market reforms can lead to unexpected state expansion.”

This research has been peer-reviewed.

For more information on this research see: Riding the Tiger: Managing Risk In Us Housing Finance and Health Insurance Welfare Markets. Socio-Economic Review, 2021. Socio-Economic Review can be contacted at: Oxford Univ Press, Great Clarendon St, Oxford OX2 6DP, England. (Oxford University Press - http://www.oup.com/; Socio-Economic Review - ser.oxfordjournals.org)

The news correspondents report that additional information may be obtained from Kimberly J. Morgan, George Washington University, Dept. of Political Sciences, Washington, DC 20052, United States.

The direct object identifier (DOI) for that additional information is: https://doi.org/10.1093/ser/mwaa054. 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.)