Work

Private Employers Don't Need Formal Risk Adjustment

Year: 2001

Type: article

Abstract: This paper lays down a set of hypotheses to explain why private employers do not use formal risk adjustment. The theme running through these hypotheses is simple: private employers don't need formal adjustment because they have better tools for dealing with adverse selection than formal risk adjustment provides. Open enrollment provisions, premium negotiations, and restricting employees' choices of health plans are mechanisms superior to formal risk adjustment for dealing with problems caused by adverse selection.

Source: INQUIRY The Journal of Health Care Organization Provision and Financing

DOI: 10.5034/inquiryjrnl_38.3.260

Authors: Jacob Glazer, Thomas G. McGuire

Institution: Tel Aviv University

Language: English

Topic: Healthcare Policy and Management

Subfield: Economics and Econometrics

Field: Economics, Econometrics and Finance

Domain: Social Sciences

SDG: Decent work and economic growth

Open Access status: bronze

Funder: Agency for Healthcare Research and Quality