Voluntary pooling of genetic risk: A health insurance experiment

Mimra, Wanda; Nemitz, Janina; Waibel, Christian

Document type :

Article dans une revue scientifique

DOI :

10.1016/j.jebo.2019.04.001

Title :

Voluntary pooling of genetic risk: A health insurance experiment

Author(s) :

Mimra, Wanda [Auteur]
Lille économie management - UMR 9221 [LEM]
Eidgenössische Technische Hochschule - Swiss Federal Institute of Technology [Zürich] [ETH Zürich]
Nemitz, Janina [Auteur]
Waibel, Christian [Auteur]

Journal title :

Journal of Economic Behavior & Organization

Publication date :

2019-05-16

ISSN :

0167-2681

English keyword(s) :

Health insurance
Genetic risk
Pooling
Effort

HAL domain(s) :

Sciences de l'Homme et Société
Sciences de l'Homme et Société/Economies et finances

English abstract : [en]

Scientific and technological advances increasingly allow for better tailoring of health insurance plans to individual health risk profiles. This development questions the sustainability of health plans that feature strong ...
Show more >Scientific and technological advances increasingly allow for better tailoring of health insurance plans to individual health risk profiles. This development questions the sustainability of health plans that feature strong cross-subsidization across different health risk types and health behaviors. An important observation is that the willingness to cross-subsidize risks in health plans might depend on whether the risk is uncontrollable by individuals, such as genetic risk, or modifiable via health behaviors. This paper provides the results of an experiment on the willingness to pool genetic risk in health insurance. Subjects’ overall health risk has an assigned, uncontrollable genetic risk part that differs across individuals as well as a behavioral risk part, which can be reduced by costly effort. Participants can decide between a pooling, community-rated group insurance scheme and an insurance with a fully individually risk-adjusted premium. In the experimental variation, the group insurance scheme either includes behavioral risk or separates it out via individual premium discounts. Although we observe social preferences for pooling, only a low level of actual genetic risk pooling emerges across the experimental conditions. This is due to both large heterogeneity in social preferences across subjects, and the dynamics of the willingness to pay for group insurance in the different experimental markets.Show less >

Language :

Anglais

Peer reviewed article :

Oui

Audience :

Internationale

Popular science :

Non

Collections :

Lille Économie Management (LEM) - UMR 9221

Source :

Harvested from HAL

Files

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