CINCH Health Economics Research Center
Weststadttürme Berliner Platz 6-8 45127 Essen, Ger
Institutional Affiliation: University of Duisburg-Essen
NBER Working Papers and Publications
|June 2017||Exit, Voice or Loyalty? An Investigation into Mandated Portability of Front-Loaded Private Health Plans|
with Juan Pablo Atal, Hanming Fang, Nicolas R. Ziebarth: w23468
We study theoretically and empirically how consumers in an individual private long-term health insurance market with front-loaded contracts respond to newly mandated portability requirements of their old-age provisions. To foster competition, effective 2009, German legislature made the portability of standardized old-age provisions mandatory. Our theoretical model predicts that the portability reform will increase internal plan switching. However, under plausible assumptions, it will not increase external insurer switching. Moreover, the portability reform will enable unhealthier enrollees to reoptimize their plans. We find confirmatory evidence for the theoretical predictions using claims panel data from a big private insurer.
Published: Juan Pablo Atal & Hanming Fang & Martin Karlsson & Nicolas R. Ziebarth, 2019. "Exit, Voice, or Loyalty? An Investigation Into Mandated Portability of Front‐Loaded Private Health Plans," Journal of Risk and Insurance, vol 86(3), pages 697-727. citation courtesy of