Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/110361
Authors: 
Lange, Renate
Schiller, Jörg
Steinorth, Petra
Year of Publication: 
2015
Series/Report no.: 
SOEPpapers on Multidisciplinary Panel Data Research 757
Abstract: 
This paper empirically assesses the selection effects and determinants of the demand for supple-mental health insurance that covers hospital and dental benefits in Germany. Our representative dataset provides doctor-diagnosed indicators of the individual's health status, risk attitude, demand for medical services and insurance purchases in other lines of insurance as well as rich demographic and socioeconomic information. Controlling for a wide range of individual preferences, we find evidence of adverse selection for individuals aged 65 and younger for hospital coverage despite initial individual underwriting by insurers. The reverse is true for individuals older than 65; individuals with supplemental hospital coverage are healthier on average. In addition, insurance affinity and income are the most important drivers of the demand for both types of coverage.
Subjects: 
supplemental health insurance
adverse selection
insurance demand
German Statutory Health Insurance
insurance affinity
JEL: 
D82
G22
I11
Document Type: 
Working Paper

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