Pashchenko, Svetlana; Porapakkarm, Ponpoje - Nationalekonomiska Institutionen, Uppsala Universitet - 2011
risk. Reclassification risk arises because the health conditions of individuals evolve over time, while a typical health … insurance premium. We study how costly this reclassification risk is for the welfare of consumers. More specifically, we use a … insurance contracts that can provide protection against reclassification risk even in the absence of consumer commitment or …