Despite the various antiselection
provisions of the ACA, recent exits by some large insurers from the public exchanges in several markets outside California, as well as sizeable premium increases in many markets, have led to questions about the extent of adverse selection in the post-ACA individual market.
threatens the integrity of risk pools and could inflate rates beyond the reach of applicants.
The critics also note that running a multi-employer health plan is difficult, even when all of the employers are in the same state, and that antiselection
problems have destroyed many single-state associate health plan programs.
Health insurers have argued that they need tough defenses against antiselection
, such as purchase mandates, to make offering coverage without medical underwriting economically feasible.
ranging from 200-300 percent of the 2001 CSO) impacts the degree of the shock lapse rate and resulting antiselection
. The degree of mortality deterioration varies according to a number of factors such as the length of level term period, the magnitude of the renewal premium following the initial level premium term period, issue age, duration, risk class, and gender.
Villeneuve, B., 2003, Concurrence Et AntisElection
Multidimensionnelle En Assurance, Annales d'Economie et Statistique 69:119-142.
The authors cover various insurance products, policy forms, the management of antiselection
, the setting of premium rates, and a wide variety of other related subjects.
On the other hand, whether insurers, insurance regulators and exchange managers have the risk-management tools they need to keep antiselection
from drowning health insurers is a serious concern.
In fact, in what was described as a "perfect storm" of antiselection
, those with genetic markers indicating dementia risk were 5.8 times more likely to increase LTC coverage, and those with a family history of Alzheimer's were three times more likely to have already purchased a LTC policy prior to being screened.
Contracts are commitments between economic agents which enable them to surpass difficulties in a way that would be impossible in a classic market, especially asymmetric information problems (antiselection
and moral hazard) and the difficulty to divide the quasi-rent.
Labour also found its antiselection
ethos under question three years ago when the party's MP for Northampton North Sally Keeble decided to send her son to a pounds 6,000-a-year private school.
Engman says that the tendency of people to purchase more insurance when they know they are at increased risk to contract a disease is called "antiselection
." "It's a natural human tendency," he says.