Intergenerational Risk Sharing and Health Insurance Financing |
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| Authors: | WILLIAM JACK |
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| Institution: | Centre for Economic Policy Research. Research School of Social Sciences, Australian National University, Canberra. ACT 2600 |
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| Abstract: | When medical care prices and individual health needs follow stochastic processes with non-zero trends. community rating facilitates lifetime insurance and intergenerational risk sharing. While such a policy is unsustainable in competitive private insurance markets. it provides the basis for the financing of public health systems designed to spread risks efficiently. |
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