NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH
loading...

Exit, Voice or Loyalty? An Investigation into Mandated Portability of Front-Loaded Private Health Plans

Juan Pablo Atal, Hanming Fang, Martin Karlsson, Nicolas R. Ziebarth

NBER Working Paper No. 23468
Issued in June 2017
NBER Program(s):The Health Care Program, The Health Economics Program, The Industrial Organization Program, The Public Economics Program

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.

download in pdf format
   (1633 K)

email paper

Machine-readable bibliographic record - MARC, RIS, BibTeX

Document Object Identifier (DOI): 10.3386/w23468

Published: Juan Pablo Atal & Hanming Fang & Martin Karlsson & Nicolas R. Ziebarth, 2019. "Exit, Voice, or Loyalty? An Investigation Into Mandated Portability of Frontā€Loaded Private Health Plans," Journal of Risk and Insurance, vol 86(3), pages 697-727. citation courtesy of

Users who downloaded this paper also downloaded* these:
Autor, Kostol, Mogstad, and Setzler w23466 Disability Benefits, Consumption Insurance, and Household Labor Supply
Obstfeld and Taylor w23440 International Monetary Relations: Taking Finance Seriously
Levine, Lin, and Wang w23469 Acquiring Banking Networks
Heim, Lurie, and Simon w23471 Did the Affordable Care Act Young Adult Provision Affect Labor Market Outcomes? Analysis Using Tax Data
Deshpande and Li w23472 Who Is Screened Out? Application Costs and the Targeting of Disability Programs
 
Publications
Activities
Meetings
NBER Videos
Themes
Data
People
About

National Bureau of Economic Research, 1050 Massachusetts Ave., Cambridge, MA 02138; 617-868-3900; email: info@nber.org

Contact Us