This paper aims to identify selection separately from moral hazard in a mandatory health insurance market where enrollees can freely choose their deductible scheme. The empirical analysis uses a unique data set for the period 2010-2013 covering the whole population of the Netherlands at enrollee...

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...