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Related Experiment Videos

Risk sharing between competing health plans and sponsors.

E M van Barneveld1, R C van Vliet, W P van de Ven

  • 1Department of Health Policy and Management, Erasmus University, Rotterdam, The Netherlands.

Health Affairs (Project Hope)
|October 5, 2001
PubMed
Summary

Risk sharing in health plans balances payment and efficiency. Empirical research on Dutch health plans shows sponsors can improve payment systems by adjusting risk-sharing strategies to reduce adverse selection.

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Area of Science:

  • Health economics
  • Healthcare management
  • Public health policy

Background:

  • Capitation payments are common for competing health plans but raise concerns about risk selection.
  • Current payment methods incentivize health plans to select healthier individuals, potentially disadvantaging sicker populations.

Purpose of the Study:

  • To analyze the impact of risk-sharing mechanisms in Dutch health plans.
  • To evaluate how different risk-sharing models affect health plan incentives for efficiency and selection.

Main Methods:

  • Empirical research on Dutch health plans.
  • Analysis of various risk-sharing payment structures.

Main Results:

  • Risk sharing partially mitigates incentives for risk selection by health plans.

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  • However, risk sharing can also reduce incentives for cost efficiency.

    • Conclusions:

    • Sponsors of health plans can enhance their payment systems by implementing or modifying risk-sharing arrangements.
    • Optimizing risk sharing is crucial for balancing equitable access and efficient healthcare delivery.