Publication: Risk-type concentration and efficiency incentives: a challenge for the risk adjustment formula
Risk-type concentration and efficiency incentives: a challenge for the risk adjustment formula
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van Kleef, R. C., Beck, K., & Buchner, F. (2010). Risk-type concentration and efficiency incentives: a challenge for the risk adjustment formula. Geneva Papers on Risk and Insurance, 35(4), 503–520. https://doi.org/10.1057/gpp.2010.25
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An important goal of risk-adjusted capitation payments (RACPs) to competitive community-rated health plans-that may differ in coverage and/or the organisation of delivering care-is to reduce incentives for risk selection while maintaining incentives for efficiency. In most schemes, RACPs are simply based on the average observed costs in risk groups (in a prior year). We show that under this procedure, incentives for efficiency will not always be maintained: when identical risk types are concentrated in the same health plans-due to sel
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- van Kleef, R C
- Beck, K
- Buchner, F
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van Kleef, R. C., Beck, K., & Buchner, F. (2010). Risk-type concentration and efficiency incentives: a challenge for the risk adjustment formula. Geneva Papers on Risk and Insurance, 35(4), 503–520. https://doi.org/10.1057/gpp.2010.25
