Class 8: Health Insurance Competition

Objectives

• Define community ratings and discuss its costs and benefits for insurance markets
• Define risk-adjustment and its relevance to insurance markets

Activities

• Discuss McWilliams, Hsu, and Newhouse (2012). Link to paper here
• Homework 1 due this Friday!

References

McWilliams, J Michael, John Hsu, and Joseph P Newhouse. 2012. “New Risk-Adjustment System Was Associated with Reduced Favorable Selection in Medicare Advantage.” Health Affairs 31 (12): 2630–40.