We study optimal risk adjustment in imperfectly competitive health insurance markets when high-risk consumers are less likely to switch insurer than low-risk consumers. First, we find that insurers still have an incentive to select even if risk adjustment perfectly corrects for cost differences...

Front Cover -- Risk Adjustment, Risk Sharing and Premium Regulation in Health Insurance Markets -- Copyright Page -- Contents -- List of Contributors -- Regulated Competition in Health Insurance Markets: Foreword by Alain Enthoven -- Acknowledgments -- I: Theory -- 1 Regulated Competition in...

"Risk adjustment, risk sharing and premium regulation in health insurance markets: theory and practice" describes the goals, design and evaluation of health plan payment systems. Part I contains 5 chapters discussing the role of health plan payment in regulated health insurance markets, key...