2. Below is the abstract of Do health plans risk-select? An audit study on Germany's Social...

 

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2. Below is the abstract of "Do health plans risk-select? An audit study on Germany's Social Health Insurance" (Bauhoff, 2012): This paper evaluates whether health plans in Germany's Social Health Insurance select on an easily observable predictor of risk: geography. To identify plan behavior separately from concurrent demand-side adverse selection, I implement a double-blind audit study in which plans are contacted by fictitious applicants from different locations. I find that plans are less likely to respond and follow-up with applicants from higher-cost regions, such as West Germany. The results suggest that supply-side selection may emerge even in heavily regulated insurance markets. The prospect of risk selection by firms has implications for studies of demand-side selection and regulatory policy in these settings. (a) (4 points) What kind of health policy model does Germany have? Describe the three key features of the model. (b) (6 points) This paper provides evidence of risk selection in Germany. How can you eliminate or reduce risk selection? Explain using two options that we discussed in class (in your own words). 2. Below is the abstract of "Do health plans risk-select? An audit study on Germany's Social Health Insurance" (Bauhoff, 2012): This paper evaluates whether health plans in Germany's Social Health Insurance select on an easily observable predictor of risk: geography. To identify plan behavior separately from concurrent demand-side adverse selection, I implement a double-blind audit study in which plans are contacted by fictitious applicants from different locations. I find that plans are less likely to respond and follow-up with applicants from higher-cost regions, such as West Germany. The results suggest that supply-side selection may emerge even in heavily regulated insurance markets. The prospect of risk selection by firms has implications for studies of demand-side selection and regulatory policy in these settings. (a) (4 points) What kind of health policy model does Germany have? Describe the three key features of the model. (b) (6 points) This paper provides evidence of risk selection in Germany. How can you eliminate or reduce risk selection? Explain using two options that we discussed in class (in your own words).

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a Germany has a Social Health Insurance SHI model The three key features of this model are 1 Mandato... View the full answer