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A Simple Model of Health Insurance Competition

24 Pages Posted: 27 Apr 2011  

Alexander Kemnitz

Dresden University of Technology - Faculty of Economics and Business Management

Multiple version iconThere are 2 versions of this paper

Date Written: April 26, 2011

Abstract

This paper investigates competition between health insurance companies under different financing regulations. We consider two alternatives advanced in recent German health care reform discussions: competition by contribution rates (health contributions) and by fees (health premia). We find that contribution rate competition yields lower company profits and higher consumer welfare than premia competition when switching between insurance companies is costly.

Keywords: Health Care Reform, Competition, Consumer Choice

JEL Classification: I11, I18, D43

Suggested Citation

Kemnitz, Alexander, A Simple Model of Health Insurance Competition (April 26, 2011). Available at SSRN: https://ssrn.com/abstract=1823247 or http://dx.doi.org/10.2139/ssrn.1823247

Alexander Kemnitz (Contact Author)

Dresden University of Technology - Faculty of Economics and Business Management ( email )

Mommsenstrasse 13
Dresden, D-01062
Germany

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