Improving risk adjustment in the Czech Republic

Arbeitspapier

This paper analyses possible options how to improve the risk adjustment of the health insurance system in the Czech Republic. Out of possible options it argues for including Pharmaceutical Cost Groups (PCGs) as additional risk factors since it is an improvement that can be implemented almost instantaneously. On real data from an anonymous sickness fund it confirms that predictive performance of PCGs models is consistently better than the performance of the demographic model that is currently used. The study also describes and examines the Czech health insurance market and implications of proposed changes of the current government. Based on experience from other countries we point to a problem of risk selection if the changes are not accompanies by a tighter regulation, specifically in the form of improved risk adjustment formula.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: IES Working Paper ; No. 2/2009

Classification and Topics

• Classification: Wirtschaft ; Econometric and Statistical Methods and Methodology: General ; Asymmetric and Private Information; Mechanism Design ; Insurance; Insurance Companies; Actuarial Studies ; Health: General ; Analysis of Health Care Markets ; Health: Government Policy; Regulation; Public Health
• Subject: Risk adjustment ; Managed competition ; Health insurance ; Pharmaceutical Cost Groups ; Czech Republic ; Krankenversicherung ; Risikomodell ; Wettbewerb ; Tschechische Republik

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Chalupka, Radovan
• Event: Veröffentlichung
• (who): Charles University in Prague, Institute of Economic Studies (IES)
• (where): Prague
• (when): 2009

Further information

• Handle: http://hdl.handle.net/10419/83338
• Last update: 10.03.2025, 11:44 AM CET