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Updated: Jul 14, 2026
13:04
Measuring the Subjective Value of Risky and Ambiguous Options using Experimental Economics and Functional MRI Methods
Published on: September 19, 2012
Risk segmentation: goal or problem?
1Division of Health Services Research and Policy, University of Minnesota, Minneapolis 55455, USA. feldm002@tc.umn.edu
Journal of Health Economics
|September 30, 2000
Summary
Economists
Area of Science:
- Health economics
- Insurance market dynamics
Background:
- Historically, risk segmentation in health insurance was viewed favorably.
- Current perspectives link it to market inefficiencies and coverage limitations.
Purpose of the Study:
- To analyze the evolving economic perspectives on health insurance risk segmentation.
- To evaluate the efficiency of risk segmentation under different viewpoints (ex ante vs. ex post).
Main Methods:
- Literature review of economists' views on risk segmentation.
- Theoretical analysis of ex post efficiency in health insurance markets.
- Comparison of managed care with coverage limitations for risk segmentation.
Main Results:
- Risk segmentation, once desirable, is now often seen as detrimental.
- Ex post analysis suggests risk segmentation can be efficient.
- Managed care may be a superior mechanism for ex post risk segmentation.
Conclusions:
- The efficiency of risk segmentation depends on the temporal perspective.
- Managed care offers a potential solution for efficient risk segmentation.
- A key concern remains the impact on long-term insurance contracts and consumer protection against lifetime risk changes.
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