NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

Deriving Risk Adjustment Payment Weights to Maximize Efficiency of Health Insurance Markets

Timothy J. Layton, Thomas G. McGuire, Richard C. van Kleef

NBER Working Paper No. 22642
Issued in September 2016

---- Acknowledgements ----

Research for this paper was supported by the National Institute of Mental Health (R01 MH094290), the National Institute of Aging (P01-AG032952), and the Laura and John Arnold Foundation. In addition, Layton was supported by NIMH T32 019733. We are grateful to Frank Bakker, Savannah Bergquist, Jay Bhattacharya, Michael Chernew, Frank Eijkenaar, Randy Ellis, Michael Geruso, Alice Ndikumana, Sharon-Lise Normand, Sherri Rose, Mark Shepard, Anna Sinaiko, Wynand van de Ven, the participants of the Economics Seminar Series in Leuven, Belgium (February 9, 2016), the Health Insurance Seminar Series in Rotterdam, the Netherlands (February 10, 2016), and the American Society of Health Economics (June 13, 2016) for comments on a previous draft. We gratefully acknowledge the Dutch Ministry of Health and the Association of Health Insurers for providing access to the administrative data. The authors are solely responsible for the analyses and conclusions. The views expressed herein are those of the authors and do not necessarily reflect the views of the National Bureau of Economic Research.

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