Patients at risk: health reform and risk adjustment.

@article{Newhouse1994PatientsAR,
  title={Patients at risk: health reform and risk adjustment.},
  author={Joseph Newhouse},
  journal={Health affairs},
  year={1994},
  volume={13 1},
  pages={132-46}
}
The Clinton proposal recognizes the need for successful risk adjustment and calls for the National Health Board to promulgate a risk adjustment formula by 1 April 1995. Unfortunately, risk adjustment technology is primitive; using observable characteristics such as age only slightly ameliorates the flawed incentives of not adjusting at all. Without major improvements in risk adjustment technology we face a trade-off between giving plans an incentive to select good risks and an incentive to… CONTINUE READING