Fm. Bakker et al., Deductibles in health insurance: can the actuarially fair premium reduction exceed the deductible?, HEALTH POLI, 53(2), 2000, pp. 123-141
Citations number
36
Categorie Soggetti
Public Health & Health Care Science","Health Care Sciences & Services
The actuarially fair premium reduction in case of a deductible relative to
full insurance is affected by: (1) out-of-pocket payments, (2) moral hazard
, (3) administrative costs, and, in case of a voluntary deductible, (4) adv
erse selection. Both the partial effects and the total effect of these fact
ors are analyzed. Moral hazard and adverse selection appear to have a subst
antial effect on the expected health care costs above a deductible but a sm
all effect on the expected out-of-pocket expenditure. A premium model indic
ates that for a broad range of deductible amounts the actuarially fair prem
ium reduction exceeds the deductible. (C) 2000 Elsevier Science Ireland Ltd
. All rights reserved.