This paper examines a public option competing alongside private insurers in Medicare Part D. We estimate a random coefficient demand system and oligopoly supply-side model with endogenous premium subsidies and risk adjustment payments. If the public option does not affect health risk sorting, counterfactual results show modest competitive benefits. However, increased subsidy payments eliminate ...

In 2017, the Affordable Care Act’s nongroup marketplaces saw premium increases averaging 21 percent, with substantially higher increases in some states.1 For the 2017 plan year, several insurers left the individual marketplaces (and, in some cases, individual markets as a whole), creating many more rating regions with only one or two insurers. These rating regions, as a result, have little insu...

Policy analysts consider the Netherlands health system a possible model for the United States. Since 2006 all Dutch citizens have to buy standardized individual health insurance coverage from a private insurer. Consumers have an annual choice among insurers, and insurers can selectively contract or integrate with health care providers. Subsidies make health insurance affordable for everyone. A ...

Introduction/backgroundAustralian osteopaths predominately work in private practice. The vast majority of patients who present to fund their own care, with many receiving a rebate through health insurance cover. While there is little that describes the relationship between Australian osteopathy profession and insurers, such information could provide an opportunity for insurers improve coverage ...

Life insurers are exposed to deflation risk: falling prices could lead to insufficient investment returns, and inflation-indexed protections could make insurers vulnerable to deflation. In this spirit, this paper proposes a market-based methodology for measuring deflation risk based on a discrete framework: the latter accounts for the real interest rate, the inflation index level, its condition...

Competition between insurance companies for employees of a firm often increases the prices and reduces the availability of high-quality health plans offered to employees. An insurance company can reduce competition by signing an exclusive contract, which guarantees that the company is the only insurance provider. The study assesses whether exclusive contracts can alleviate the negative conseque...

We consider the classical Cramér-Lundberg model with dynamic proportional reinsurance and solve the problem of finding the optimal reinsurance strategy which minimizes the expected quadratic distance of the risk reserve to a given benchmark. This result is extended to a mean-variance problem.

The connection between architecture and science and sound based on mathematical relations has continued to develop[ since the rise of the Western classical civilization that originated in Ancient Greece. The mysterious Pythagorean cosmology pursued as secret esoteric knowledge was related to the search of rhythm, proportionality and harmony. Even somewhat earlier, Greek mysteries were based on ...

This paper develops and tests a theory of insurers' choice of the mix of equity and liabilities. The role of equity in insurance markets (and in our model) is to back insurers' promises to pay claims when there is aggregate uncertainty, or dependence among risks. Depending on the nature of this aggregate uncertainty, the equity held by rms in a competitive insurance market may increase with ris...