TY - JOUR
T1 - A note on risk adjustment and fair compensation
AU - Shmueli, Amir
PY - 2000
Y1 - 2000
N2 - This note comments on the application of results from the theory of fair compensation to risk adjustment. It argues that the main flaw of such application lies in the consideration of health plans merely as administrative social agents, through which money flows from a central fund to providers of medical care, ignoring their economic behaviour. However, it is that behaviour which raises the issue of risk selection to begin with. With linear health expenditure function, the fair compensation axiomatic solution is shown to be equivalent to the solution of a simple optimal regulation problem. That equivalence permits the analysis of several further issues related to risk adjustment and to the application of the theory of fair compensation to it. Copyright (C) 2000 John Wiley and Sons, Ltd.
AB - This note comments on the application of results from the theory of fair compensation to risk adjustment. It argues that the main flaw of such application lies in the consideration of health plans merely as administrative social agents, through which money flows from a central fund to providers of medical care, ignoring their economic behaviour. However, it is that behaviour which raises the issue of risk selection to begin with. With linear health expenditure function, the fair compensation axiomatic solution is shown to be equivalent to the solution of a simple optimal regulation problem. That equivalence permits the analysis of several further issues related to risk adjustment and to the application of the theory of fair compensation to it. Copyright (C) 2000 John Wiley and Sons, Ltd.
KW - Fair compensation
KW - National health insurance
KW - Regulation
KW - Risk Adjustment
UR - http://www.scopus.com/inward/record.url?scp=0033835124&partnerID=8YFLogxK
U2 - 10.1002/1099-1050(200009)9:6<561::AID-HEC537>3.0.CO;2-J
DO - 10.1002/1099-1050(200009)9:6<561::AID-HEC537>3.0.CO;2-J
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C2 - 10983007
AN - SCOPUS:0033835124
SN - 1057-9230
VL - 9
SP - 561
EP - 564
JO - Health Economics (United Kingdom)
JF - Health Economics (United Kingdom)
IS - 6
ER -