Title
Are Colombian sickness funds cream skimming enrollees? An analysis with suggestions for policy improvement
Abbreviated Journal Title
J. Policy Anal. Manage.
Keywords
HEALTH-INSURANCE; UNION-STATUS; CARE; SELECTION; WORKERS; DEMAND; Economics; Public Administration
Abstract
One of the primary objectives of Colombian social health insurance reform was to increase competition among for-profit insurers. Unfortunately, the flat capitated formula creates an opportunity for sickness funds to maximize reimbursement gains by "cream skimming" -selecting against unhealthy individuals. This paper explores sickness fund selection behavior to evaluate the efficiency losses associated with the introduction of managed competition in Colombia. Data from a 1997 Colombian household survey are analyzed with a bivariate probit model with partial observability using instrumental variables. The model yields some evidence of sickness fund selection based on health status. Public policy options to discourage risk selection by health status are discussed. (C) 2004 by the Association for Public Policy Analysis and Management.
Journal Title
Journal of Policy Analysis and Management
Volume
23
Issue/Number
4
Publication Date
1-1-2004
Document Type
Article
DOI Link
Language
English
First Page
873
Last Page
888
WOS Identifier
ISSN
0276-8739
Recommended Citation
"Are Colombian sickness funds cream skimming enrollees? An analysis with suggestions for policy improvement" (2004). Faculty Bibliography 2000s. 4841.
https://stars.library.ucf.edu/facultybib2000/4841
Comments
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