Managing adverse selection: underinsurance versus underenrollment.

Adverse selection in insurance markets may lead some consumers to underinsure or too few consumers to purchase insurance relative to the socially optimal level. I study whether common government policy interventions can mitigate both underinsurance and underenrollment due to adverse selection. I est...

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Publicado en:RAND Journal of Economics (Wiley-Blackwell) Vol. 52; no. 2; pp. 359 - 382
Autor principal: Saltzman, Evan
Formato: Artículo
Publicado: Wiley-Blackwell Jun2021
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Acceso en línea:Ver este registro en EBSCOhost
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        atl: Managing adverse selection: underinsurance versus underenrollment.
      aug:
        au: Saltzman, Evan
        affil: Department of Economics, Emory University
      su:
        California
        Government policy
        Intervention (Federal government)
        Insurance
        Insurance exchanges
        Health insurance exchanges
      sug:
        subj:
          Government policy
          Intervention (Federal government)
          Insurance
          California
          Other Insurance Funds
          All Other Insurance Related Activities
          Third Party Administration of Insurance and Pension Funds
          Insurance exchanges
          Health insurance exchanges
      ab: Adverse selection in insurance markets may lead some consumers to underinsure or too few consumers to purchase insurance relative to the socially optimal level. I study whether common government policy interventions can mitigate both underinsurance and underenrollment due to adverse selection. I establish conditions under which there exists a tradeoff in addressing underinsurance and underenrollment. I then estimate a model of the California ACA insurance exchange using consumer‐level data to quantify the welfare impact of risk adjustment and the individual mandate. I find (1) risk adjustment reduces underinsurance, but reduces enrollment and (2) the mandate increases enrollment, but increases underinsurance.
      pubtype: Academic Journal
      doctype: Article
      src: R
    language: English
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