Reports from Xi’an Jiaotong University Provide New Insights into Critical Illness (Optimal Time-consistent Social Health Insurance and Private Health Insurance Strategy Under a New Health Insurance Framework): Disease Attributes – Critical Illness

2022 MAY 12 (NewsRx) -- By a News Reporter-Staff News Editor at Insurance Daily News -- Investigators publish new report on Disease Attributes - Critical Illness. According to news reporting out of Xi’an, People’s Republic of China, by NewsRx editors, research stated, “A new continuous-time health insurance framework is proposed to simultaneously determine the optimal social health insurance strategy and optimal private health insurance strategy. The social health insurance can cover both the expenditures of general illnesses and critical illnesses, while the private health insurance only covers the expenditure of critical illnesses.”

Financial supporters for this research include National Natural Science Foundation of China (NSFC), Humanities and Social Sciences Project of the Ministry of Education of China.

Our news journalists obtained a quote from the research from Xi’an Jiaotong University, “To reflect the inevitable connection between critical illnesses and general illnesses, we assume that the number of critical illnesses and the number of general illnesses are positively correlated. The policyholder’s objective is to find an optimal time-consistent social health insurance and private health insurance strategy so as to maximize the expected terminal wealth while minimizing the variance of the terminal wealth. Explicit solutions for the optimal time-consistent health insurance strategy and the corresponding value function are obtained by employing the stochastic control technique. Finally, we numerically examine the influence of expenditure parameters on the optimal time-consistent health insurance strategy, and also examine the effect of the health insurance on the policyholder.”

According to the news editors, the research concluded: “The results reveal the similarities and differences between social health insurance and private health insurance, which provide insightful guidance for health insurance practice in reality.”

This research has been peer-reviewed.

For more information on this research see: Optimal Time-consistent Social Health Insurance and Private Health Insurance Strategy Under a New Health Insurance Framework. Applied Stochastic Models in Business and Industry, 2022. Applied Stochastic Models in Business and Industry can be contacted at: Wiley, 111 River St, Hoboken 07030-5774, NJ, USA. (Wiley-Blackwell - http://www.wiley.com/; Applied Stochastic Models in Business and Industry - http://onlinelibrary.wiley.com/journal/10.1002/(ISSN)1526-4025)

Our news journalists report that additional information may be obtained by contacting Zhiping Chen, Xi’an Jiaotong University, School of Mathematics and Statistics, Xian 710049, People’s Republic of China.

The direct object identifier (DOI) for that additional information is: https://doi.org/10.1002/asmb.2683. 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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