Consumer price sensitivity in Dutch health insurance.

International Journal of Health Care Finance and Economics
Machiel van DijkAnne de Boo

Abstract

To estimate the price sensitivity of consumer choice of health insurance firm. Using paneldata of the flows of insured between pairs of Dutch sickness funds during the period 1993-2002, we estimate the sensitivity of these flows to differences in insurance premium. The price elasticity of residual demand for health insurance was low during the period 1993-2002, confirming earlier findings based on annual changes in market share. We find small but significant elasticities for basic insurance but insignificant elasticities for supplementary insurance. Young enrollees are more price sensitive than older enrollees. Competition was weak in the market for health insurance during the period under study. For the market-based reforms that are currently under way, this implies that measures to promote competition in the health insurance industry may be needed.

References

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Citations

Dec 2, 2006·Health Care Analysis : HCA : Journal of Health Philosophy and Policy·Hans Maarse, Ruud Ter Meulen
Oct 28, 2008·BMC Health Services Research·Ine BorghansGert P Westert
Feb 12, 2013·Health Policy·Sarah ThomsonCarine Van de Voorde
Nov 16, 2014·The European Journal of Health Economics : HEPAC : Health Economics in Prevention and Care·Jonas B PendzialekStephanie Stock
Feb 8, 2011·Journal of Health Economics·Rudy C H M Douven, Frederik T Schut
Jan 27, 2012·Health Economics·Thomas C BuchmuellerEdward N Okeke
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May 22, 2018·Health Economics·Tamara Bischof, Christian P R Schmid
Feb 26, 2010·The European Journal of Health Economics : HEPAC : Health Economics in Prevention and Care·Karl-Michael Ortmann
Mar 1, 2017·The European Journal of Health Economics : HEPAC : Health Economics in Prevention and Care·Rudy DouvenVictoria Shestalova
Dec 8, 2020·Journal of Health Economics·Thomas C BuchmuellerKevin E Staub

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