How profitable is risk selection? A comparison of four risk adjustment models
研究了四种风险调整模型下，保险公司利用私有信息选择低成本参保人可能获得的最大利润，发现风险选择利润仍然可观。
To mitigate selection triggered by capitation payments, risk-adjustment models bring capitation payments closer on average to individuals' expected expenditure. We examine the maximum potential profit that plans could hypothetically gain by using their own private information to select low-cost enrollees when payments are made using four commonly used risk adjustment models. Simulations using a privately insured sample suggest that risk selection profits remain substantial. The magnitude of potential profit varies according to the risk adjustment model and the private information plans can employ to identify profitable enrollees.