Access to coverage for high-risks in a competitive individual health insurance market: via premium rate restrictions or risk-adjusted premium subsidies?

@article{Ven2000AccessTC,
  title={Access to coverage for high-risks in a competitive individual health insurance market: via premium rate restrictions or risk-adjusted premium subsidies?},
  author={Wynand P. P. M. van de Ven and Ren{\'e} C. J. A. van Vliet and Frederik T. Schut and E M van Barneveld},
  journal={Journal of health economics},
  year={2000},
  volume={19 3},
  pages={311-39}
}
A competitive market for individual health insurance tends to risk-adjusted premiums. Premium rate restrictions are often considered a tool to increase access to coverage for high-risk individuals in such a market. However, such regulation induces selection which may have several adverse effects. As an alternative approach we consider risk-adjusted premium subsidies. Empirical results of simulated premium models and subsidy formulae are presented. It is shown that sufficiently adjusted… CONTINUE READING