Compensating for Biased Selection in Health Insurance

The focus of interest in HMOs is shifting from simple encouragement of their growth to the design of systems allowing for choice among alternative plans. Problems of adverse and favorable selection of enrollees may prevent effective multiple choice. A trial system, including enrollee surveys and risk pools, is proposed to create incentives for delivery systems to compete on the basis of efficiency and services rather than on selection.

Author(s): Harold S. Luft

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Volume 64, Issue 4 (pages 566–591)
Published in 1986