Reports from Griffith University Advance Knowledge in Risk Management (Moral Hazard In Australian Private Health Insurance: the Case of Dental Care Services and Extras Cover): Risk Management

2021 OCT 11 (NewsRx) -- By a News Reporter-Staff News Editor at Insurance Daily News -- Research findings on Risk Management are discussed in a new report. According to news reporting originating in Nathan, Australia, by NewsRx journalists, research stated, “We assess ex post moral hazard in Australian private health insurance (PHI) relating to dental care services (so-called extras cover) using the longitudinal Household, Income and Labour Dynamics in Australia (HILDA) Survey.”

The news reporters obtained a quote from the research from Griffith University, “Cross-sectional probit regressions specify dental care use as a function of dental care demand and endogenous PHI policy holding, including self-assessed health condition, health risk factors and socio-economic controls including age, income, education, family structure and welfare status. We find that ex post moral hazard results in the additional use of dental care services by PHI holders.”

According to the news reporters, the research concluded: “Further, dynamic analysis indicates that PHI, no matter how sporadic, is always associated with significantly more likely use of dental care services, increasing when continuously held, suggesting strong persistence in moral hazard.”

This research has been peer-reviewed.

For more information on this research see: Moral Hazard In Australian Private Health Insurance: the Case of Dental Care Services and Extras Cover. The Geneva Papers on Risk and Insurance - Issues and Practice, 2021. The Geneva Papers on Risk and Insurance - Issues and Practice can be contacted at: Palgrave Macmillan Ltd, Brunel Rd Bldg, Houndmills, Basingstoke RG21 6XS, Hants, England.

Our news correspondents report that additional information may be obtained by contacting Andrew C. Worthington, Griffith University, Dept. of Accounting Finance and Economics, 170 Kessels Rd, Nathan, Qld 4111, Australia.

The direct object identifier (DOI) for that additional information is: https://doi.org/10.1057/s41288-021-00245-3. 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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