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Examples
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Two recently published reviews avoided the difficulties of adjusting for such population and health-status differences by looking at the experience of people affected by coverage expansions.
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Ricardo: There have been suggestions to fix that problem by providing insurance against that specific eventuality (called “health-status insurance”).
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David Schwartz: Ricardo: There have been suggestions to fix that problem by providing insurance against that specific eventuality (called “health-status insurance”).
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Federal requirements prohibit premium variation among individuals on the basis of health-status related characteristics.
Finkelstein on Health Insurance, Arnold Kling | EconLog | Library of Economics and Liberty 2009
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David Schwartz: Ricardo: There have been suggestions to fix that problem by providing insurance against that specific eventuality called “health-status insurance”.
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Ricardo: There have been suggestions to fix that problem by providing insurance against that specific eventuality called “health-status insurance”.
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The more likely story, however, is that adverse selection makes health-status insurance a dud.
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What changed my mind was reading John Cochrane's Cato report on health-status insurance.
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My question for Bryan is this: do you believe that health-status insurance (or guaranteed renewability) are "illegitimate" products (in other words, it doesn't matter that they don't exist), or that they would exist if only we had fewer regulations?
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It seems to me that the same adverse selection problems you expect for health-status insurance would apply to life insurance as well.
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