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Intergenerational Risk Sharing and Health Insurance Financing
Author(s) -
JACK WILLIAM
Publication year - 1998
Publication title -
economic record
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.365
H-Index - 42
eISSN - 1475-4932
pISSN - 0013-0249
DOI - 10.1111/j.1475-4932.1998.tb01913.x
Subject(s) - business , health insurance , actuarial science , private insurance , public health insurance , health care , finance , health risk , economics , economic growth , environmental health , medicine
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.