Contending with risk selection in health insurance markets in Germany

Jacob Glazer, Thomas G. McGuire

Research output: Contribution to journalReview articlepeer-review


In many countries, competition among health plans or sickness funds raises issues of risk selection. Funds may discourage or encourage potential enrollees from joining, and these actions may have efficiency or fairness implications. This article reviews the experience in the U.S., and comments on the evidence for risk selection in Germany. There is little evidence that risk selection causes efficiency problems in Germany, but risk selection does lead to an inequality in contribution rates. A simple approach to equalizing contribution rates that does not involve risk adjustment is presented and discussed.

Original languageEnglish
Pages (from-to)75-91
Number of pages17
JournalPerspektiven der Wirtschaftspolitik
Issue number1
StatePublished - Feb 2006


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