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on Insurance Economics |
Issue of 2015‒01‒14
47 papers chosen by Soumitra K. Mallick Indian Institute of Social Welfare and Business Management |
By: | International Monetary Fund. Monetary and Capital Markets Department |
Keywords: | Financial Sector Assessment Program;Insurance regulations;Insurance supervision;Reports on the Observance of Standards and Codes;Denmark; |
Date: | 2014–12–18 |
URL: | http://d.repec.org/n?u=RePEc:imf:imfscr:14/350&r=ias |
By: | David R. Mann; David C. Stapleton; Bonnie L. O'Day |
Abstract: | This issues brief summarizes the Social Security Disability Insurance Program. Program eligibility and application, caseload growth, benefit amounts, and return-to-work incentives are discussed. |
Keywords: | SSDI, Social Security Disability Insurance, Disability, Long-Term Care |
JEL: | I J |
Date: | 2014–03–30 |
URL: | http://d.repec.org/n?u=RePEc:mpr:mprres:d45e3d13b0d54f72855ea871545ef5c9&r=ias |
By: | International Monetary Fund. Monetary and Capital Markets Department |
Keywords: | Financial system stability assessment;Financial sector;Commercial banks;Bank resolution;Deposit insurance;Bank supervision;Stress testing;Capital markets;Insurance;Reports on the Observance of Standards and Codes;Georgia; |
Date: | 2014–12–19 |
URL: | http://d.repec.org/n?u=RePEc:imf:imfscr:14/355&r=ias |
By: | Nedeljko Prdiæ, Milan Mihajloviæ, Duško Jovanoviæ (JKP Market, Novi Sad; Modern Business School, Belgrade;The Academy of Business Economics, Cacak) |
Abstract: | The main goal of this is to evaluate the possibility of efficient expansion of the life insurance market in the Republic of Serbia, as well as the economical and social influence that the development of this market would have on Serbia’s economy. The growth of life insurance market would definitely contribute to a better and safer life, general prosperity of the country, expansion of the economy, and the social structure of the country as a whole. The perspectives of the life insurance market in Serbia are great, since the market is rich enough and incomes have risen, and a very small number of people are insured. |
Keywords: | life insurance, insurance, insurance companies, perspectives, development of life insurance. |
JEL: | D40 D49 |
Date: | 2014–09 |
URL: | http://d.repec.org/n?u=RePEc:esb:casdrg:2014-215&r=ias |
By: | Allison Thompkins; Todd Honeycutt; Claire Gill; Joseph Mastrianni; Michelle Bailey |
Abstract: | This paper provides information on the services and supports used by workers with disabilities at risk of applying for disability insurance (DI) and helps build the evidence base for policies that enable workers with disabilities to avoid applying for DI and for the supports necessary to keep them in the workforce. |
Keywords: | Employment, Program Participation, SSDI, Social Security Disability Insurance, Applicants, Disability |
JEL: | I J |
Date: | 2014–06–15 |
URL: | http://d.repec.org/n?u=RePEc:mpr:mprres:a1df73c5b1084bfd93ccad9a1c416a31&r=ias |
By: | John Bound; Stephan Lindner; Timothy Waldmann |
Abstract: | Over the last 25 years, the Social Security Disability Insurance Program (DI) has grown dramatically. During the same period, employment rates for men with work limitations showed substantial declines in both absolute and relative terms. While the timing of these trends suggests that the expansion of DI was a major contributor to employment decline among this group, raising questions about the targeting of disability benefits, studies using denied applicants suggest a more modest role of the DI expansion. |
Keywords: | Social security disability insurance program, Employment trends, Disability |
JEL: | I J |
Date: | 2014–07–21 |
URL: | http://d.repec.org/n?u=RePEc:mpr:mprres:13514294569349e1a9d2f68f4d84adb6&r=ias |
By: | David Dean; John V. Pepper; Robert M. Schmidt; Steven Stern |
Abstract: | We examine the association between the receipt of vocational rehabilitation (VR) services and Federal Disability Insurance using a unique panel data source on persons who applied for assistance from Virginia’s VR program in 2000. Three central findings emerge: first, VR services are associated with lower rates of participation in disability insurance programs-a nearly 2 point drop in SSDI receipt and 1 point drop in SSI receipt. Second, VR service receipt is associated with lower take-up rates of SSDI/SSI. Finally, among VR applicants on SSDI/SSI, those who receive substantive VR services are more likely to be employed. |
Keywords: | Vocational rehabilitation, Disability insurance |
JEL: | I J |
Date: | 2014–07–21 |
URL: | http://d.repec.org/n?u=RePEc:mpr:mprres:e12c473acc9548a18a0682b175f87891&r=ias |
By: | Richard J. Manski; John F. Moeller; Haiyan Chen; Jody Schimmel; Patricia A. St. Clair; John V. Pepper |
Abstract: | This article considers differences in dental use by wealth levels across households. |
Keywords: | dental, utilization, dentistry insurance, coverage wealth income, retirement |
JEL: | I |
Date: | 2014–12–30 |
URL: | http://d.repec.org/n?u=RePEc:mpr:mprres:7744cc6c8995486e91ca8198ed93072c&r=ias |
By: | Catia Batista; Janis Umblijs |
Abstract: | How do risk preferences affect migrant remittance behaviour? Examination of this relationship has only begun to be explored. Using a tailored representative survey of 1500 immigrants in the Greater Dublin Area, Ireland, we find a positive and significant relationship between risk aversion and migrant remittances. Risk-averse individuals are more likely to send remittances home and are, on average, likely to remit a higher amount, after controlling for a broad range of individual and group characteristics. The evidence we obtain is consistent with a “purchase of self-insurance” motive to remit in that we also find support for more remittances being sent by risk-averse immigrants who face higher wage risks and to individuals with more financial resources. JEL codes: D81, F22, F24, J15, J61 |
Keywords: | Migration, Risk Aversion, Remittances, Self-Insurance |
Date: | 2014 |
URL: | http://d.repec.org/n?u=RePEc:unl:novafr:wp1402&r=ias |
By: | John Gettens Alexis D. Henry |
Abstract: | To address the unmet need for employment-related health care services among persons with disabilities, an alternative and potentially viable policy solution is the development of a new type of subsidized coverage to ‘wrap-around’ the new ACA coverage or other private and public coverage. Additional information on the employment-related health care needs of persons with disabilities is needed to inform the potential development of these plans. |
Keywords: | Employment, Health Insurance, Service Delivery, Disabilities |
JEL: | I J |
Date: | 2014–04–30 |
URL: | http://d.repec.org/n?u=RePEc:mpr:mprres:b65f73905e53403e8aaa4bda1c5efa9f&r=ias |
By: | David K. Baugh Shinu Verghese |
Abstract: | This study used unduplicated Medicaid enrollment records from 2005 to 2007 to examine enrollees' migration across states. Over the study period, only 3.7 percent moved to another state at least once. This provides a benchmark for adjusting national Medicaid statistics to reduce over-counting. Most moves were not associated with enrollment gaps, but 8.2 percent of moves were associated with short-term gaps. These gaps could indicate a lack of health insurance coverage, leading to concerns about patients' outcomes and higher systemwide costs. |
Keywords: | MAX Medicaid Eligibility Enrollment, Migration, Moving |
JEL: | I |
Date: | 2013–12–30 |
URL: | http://d.repec.org/n?u=RePEc:mpr:mprres:bab4d15104294803acfedc44f15f6a35&r=ias |
By: | Todd Honeycutt; Allison Thompkins; Michelle Bailey |
Abstract: | In this brief, we describe the employment and program participation patterns of people with disabilities before they apply for SSDI, adding to the existing literature by focusing on patterns as much as 42 months before application and including a range of programs. A better understanding of the experiences of people immediately before SSDI application can inform policies and programs designed to help potential applicants remain in the workforce and stem growth in the SSDI rolls. |
Keywords: | SSDI, Social Security Disability Insurance, Applicants, Disability |
JEL: | I J |
Date: | 2014–04–30 |
URL: | http://d.repec.org/n?u=RePEc:mpr:mprres:3a91dda97dff417986f4773a720e790e&r=ias |
By: | Gretchen Jacobson; Anthony Damico; Tricia Neuman; Marsha Gold |
Abstract: | In 2014, more than 16 million Medicare beneficiaries (30%) were enrolled in Medicare Advantage plans – private plans, such as HMOs or preferred provider organization (PPOs) that receive funds from the federal government (Medicare) to provide Medicare-covered benefits to enrollees. |
Keywords: | Medicare Advantage, Data Spotlight, Plan Changes, Medicare Beneficiaries, HMOs, PPOs |
JEL: | I |
Date: | 2014–12–10 |
URL: | http://d.repec.org/n?u=RePEc:mpr:mprres:5321106981d4410ca6d8f9061ccddcbb&r=ias |
By: | Gina Livermore; David Wittenburg; David Neumark |
Abstract: | This introduction offers a context for the articles in this thematic series by providing an overview of the programs that provide cash and in-kind supports to people with disabilities in the United States, summarizes the increasing reliance on these programs, and describes the challenges associated with reducing dependency on these programs. It then briefly discusses the articles in this thematic series in light of these issues. |
Keywords: | Disability, Employment, Social Security Disability Insurance |
JEL: | I J |
Date: | 2014–07–21 |
URL: | http://d.repec.org/n?u=RePEc:mpr:mprres:6565059a0db04b1d97785e52ee9024f2&r=ias |
By: | David Stapleton; Arif Mamun; Jeremy Page |
Abstract: | This report presents impact estimates for the original Ticket to Work program, prior to the 2008 regulatory changes. Although distribution of Tickets significantly increased service enrollment, there was little evidence of increased suspensions or terminations of benefits due to work. |
Keywords: | Ticket to Work, Impact Analysis, Social Security Disability, Awardees, Disability Insurance Beneficiaries, Randomly Assigned, Ticket, Mail Months |
JEL: | I J |
Date: | 2013–07–30 |
URL: | http://d.repec.org/n?u=RePEc:mpr:mprres:1055ab5ca04c4b888b956bd355c22338&r=ias |
By: | Carol V. Irvin; Rosemary Borck; Wilfredo Lim |
Keywords: | Medicare Medicaid Enrollees Medicaid Coverage Medicare Beneficiaries |
JEL: | I J |
Date: | 2013–03–11 |
URL: | http://d.repec.org/n?u=RePEc:mpr:mprres:e2da7a1ce2014c14875f45227ed7a4b6&r=ias |
By: | Jody Schimmel; David Stapleton; David R. Mann; Dawn Phelps |
Abstract: | This report provides statistics on employment and benefit outcomes for Ticket to Work (TTW) participants since program inception in 2002 and compares them to outcomes for other Social Security Disability Insurance and Supplemental Security Income beneficiaries. |
Keywords: | Ticket to Work Evaluation, Social Security Disability Programs, Employment of People with Disabilities, Nonpayment status for suspension or termination for work, NSTW , Regulatory changes, Labor, Disability, TTW |
JEL: | I J |
Date: | 2013–07–25 |
URL: | http://d.repec.org/n?u=RePEc:mpr:mprres:da05daa8491f4a5e804380c686ddd22d&r=ias |
By: | James M. Verdier |
Abstract: | This technical assistance brief, prepared for the Integrated Care Resource Center, provides basic information for states participating in the Centers for Medicare & Medicaid Services’ capitated Financial Alignment Demonstration covering Medicare-Medicaid enrollees. Although not a comprehensive overview of the Medicare Part D prescription drug benefit, it covers beneficiary enrollment, drug payment, drug coverage, and drug utilization. It also reviews how the Medication Therapy Management Program works. |
Keywords: | Medicare , Medicaid, Part D , Prescription Drugs, Drug Utilization |
JEL: | I |
Date: | 2013–03–30 |
URL: | http://d.repec.org/n?u=RePEc:mpr:mprres:aff6de5c25fe456ca559dc972e5f026f&r=ias |
By: | Julie Klebonis; Michelle Herman Soper; Jim Verdier |
Keywords: | Medicare, State Programs, Medicaid Enrollees, Health |
JEL: | I |
Date: | 2014–03–13 |
URL: | http://d.repec.org/n?u=RePEc:mpr:mprres:8f372e4405504edba52b069e30b99a74&r=ias |
By: | Michele Campolieti; Morley K.L. Gunderson; Jeffrey A. Smith |
Abstract: | We estimate the effects of the vocational rehabilitation (VR) program run by the Canada Pension Plan Disability Program using administrative data. Identification relies on “selection on observed variables†plus careful comparison group selection and institutional knowledge regarding sources of conditional variation in participation. |
Keywords: | Vocational rehabilitation, Disability, Evaluation, Matching |
JEL: | I J |
Date: | 2014–07–21 |
URL: | http://d.repec.org/n?u=RePEc:mpr:mprres:bcacf7439f25478da771aa1423b7e68a&r=ias |
By: | Marsha Gold Maria Cupples Hudson |
Abstract: | The Affordable Care Act has altered payment policy for private Medicare Advantage (MA) plans, with the goal of lowering costs to bring them closer to the costs of traditional Medicare. Using new information on 2009 MA costs, an issue brief compares plans’ estimates of per capita costs for providing Parts A and B benefits to their enrollees, on a risk-adjusted basis, against government data on the same costs for traditional Medicare program beneficiaries in the same county. On average, risk-adjusted MA plan costs were 4 percent higher than traditional Medicare costs (104 percent). Among plan types, only HMOs had lower average costs than traditional Medicare. The wide variation in costs for MA plans relative to those for traditional Medicare suggests room for greater efficiency in care delivery. |
Keywords: | Medicare Advantage Efficiency Variation Health |
JEL: | I |
Date: | 2013–04–24 |
URL: | http://d.repec.org/n?u=RePEc:mpr:mprres:708d7edfabd94a23822450b2010b701a&r=ias |
By: | John L. Czajka |
Abstract: | This brief examines the practical coverage continuity issues raised by determining Medicaid eligibility on a monthly basis while determining subsidy eligibility on an annual basis. |
Keywords: | SHARE, Income Eligibility, Affordable Care Act, Annual Income , Assistance, Health |
JEL: | I |
Date: | 2013–05–30 |
URL: | http://d.repec.org/n?u=RePEc:mpr:mprres:e9aac2772b794ba4978f710382a96712&r=ias |
By: | Walter Nicholson; Karen Needels; Heinrich Hock |
Abstract: | This paper summarizes federal legislation passed in response to unemployment after the Great Recession, as well as related research. The paper focuses on the durations of congressionally legislated emergency unemployment benefits that, in conjunction with other unemployment benefits, could total up to 99 weeks, but it also includes other initiatives. Although the research focuses on the United States, the authors touch on European literature that addresses many of the same policy issues. |
Keywords: | Unemployment Insurance, Compensation, Federal Policy , Great Recession |
JEL: | J |
Date: | 2014–03–30 |
URL: | http://d.repec.org/n?u=RePEc:mpr:mprres:c32c72f32d30486da535584dca47d5cb&r=ias |
By: | Marsha Gold; Winnie Wang; Gretchen Jacobson |
Abstract: | With federal and state governments pursuing efforts to better coordinate care and reduce costs for people dually eligible for both Medicare and Medicaid, this brief examines how insurers serving these markets view the opportunities and challenges. Based on interviews with senior executives at 13 large firms that contract with the Medicare and Medicaid programs, the brief finds almost all of the insurers expect dually eligible beneficiaries will become more important to their business over time. |
Keywords: | Medicare Dual Eligibiles Health Plans Health |
JEL: | I |
Date: | 2013–03–30 |
URL: | http://d.repec.org/n?u=RePEc:mpr:mprres:859769acf35d4c8d855f4de2aba96e97&r=ias |
By: | Marsha Gold Giselle Casillas |
Keywords: | Medicare Advantage, Traditional Medicare, Quality, Health Care Access |
JEL: | I |
Date: | 2014–11–30 |
URL: | http://d.repec.org/n?u=RePEc:mpr:mprres:e640dda97d0c440bbbe1082ec1a3c5fb&r=ias |
By: | Rosemary Borck; Carol V. Irvin; Wilfredo Lim |
Abstract: | We assessed transitions from Medicare-only to Medicare-Medicaid enrollment (MME) in 2009, examining variations in transition rates by age group, in use of long-term care (LTC) services, and across states. |
Keywords: | Medicare, dual eligible, Medicare-Medicaid enrollment, long-term care, nursing home, state variations |
JEL: | I |
Date: | 2014–01–31 |
URL: | http://d.repec.org/n?u=RePEc:mpr:mprres:e1238ad481cd4bcd837c0f2ae308a009&r=ias |
By: | Deirdre McCaughey; Samantha Stalley; Eric Williams |
Abstract: | This article examines environmental services (EVS) expenses and HCAHPS ratings on hospital cleanliness and overall patient experience ratings to determine how these variables are related.Insurance (SSDI) beneficiaries. Using multivariate models based on agency order of selection characteristics and a measure of the usual wait time for VR services, the study found that longer wait times are associated with lower employment outcomes at VR closure and throughout SSA administrative data. |
Keywords: | HCAHPS Hospital, Consumer Assessment of Healthcare Providers and Systems, Survey Hospital Management, Expense Management |
JEL: | I |
Date: | 2013–10–01 |
URL: | http://d.repec.org/n?u=RePEc:mpr:mprres:2c3686f2fde044cb992c914db2cd63ae&r=ias |
By: | Keith Marzilli Ericson; Amanda Starc |
Abstract: | We measure provider coverage networks for plans on the Massachusetts health insurance exchange using a two measures: consumer surplus from a hospital demand system and the fraction of population hospital admissions that would be covered by the network. The two measures are highly correlated, and show a wide range of networks available to consumers. We then estimate consumer willingness-to-pay for network breadth, which varies by age. 60-year-olds value the broadest network approximately $1200-1400/year more than the narrowest network, while 30-year-olds value it about half as much. Consumers place additional value on star hospitals, and there is significant geographic heterogeneity in the value of network breadth. |
JEL: | I10 I11 I13 L14 |
Date: | 2014–12 |
URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:20812&r=ias |
By: | Yonatan Ben-Shalom David Stapleton |
Keywords: | Medicare Beneficiaries , Disability Claims-Based Algorithms , CEDR |
JEL: | I J |
Date: | 2013–03–11 |
URL: | http://d.repec.org/n?u=RePEc:mpr:mprres:96d51a2439d1462bb3428662cac255e6&r=ias |
By: | Yonatan Ben-Shalom David Stapleton |
Abstract: | This paper provides new descriptive information on trends in the composition and outcomes of young (under age 40) Social Security Disability (SSD) beneficiaries first awarded benefits between 1996 and 2007, particularly differences between disabled workers and disabled adult children (DAC), and between beneficiaries with and without a Supplemental Security Income (SSI) history as children or adults. In 2007, compared to 1996, relatively more SSD awards to individuals under age 40 went to DAC versus disabled workers, to disabled workers and DAC who had received SSI benefits (especially as children) versus those with no SSI history, and to disabled workers and DAC with psychiatric disorders versus those with other types of impairments. |
Keywords: | Supplemental Security Income, SSDI, Social Security Disability Insurance, disabled workers , Disability, Labor |
JEL: | I J |
Date: | 2013–07–30 |
URL: | http://d.repec.org/n?u=RePEc:mpr:mprres:11a2e93ee9b1466baf236585472d20ad&r=ias |
By: | Edited by Gina Livermore; David Neumark; David Wittenburg |
Keywords: | Social Security, Disability Benefits |
JEL: | I J |
Date: | 2014–07–21 |
URL: | http://d.repec.org/n?u=RePEc:mpr:mprres:44342cb5ab2640cb92269f78e3aa41fd&r=ias |
By: | Sheila Hoag; Debra Lipson; Michaella Morzuch; Victoria Peebles |
Abstract: | KidsWell's premise is that the Affordable Care Act is the most viable near term policy option to cover all children. |
Keywords: | KidsWell, Coverage for Children, ACA, Health |
JEL: | I |
Date: | 2014–06–03 |
URL: | http://d.repec.org/n?u=RePEc:mpr:mprres:e40ef4319fae4a5baec24443399b8992&r=ias |
By: | Joseph M. Ashley; John V. Pepper; Kirsten L. Rowe; Robert M. Schmidt; Steven Stern |
Abstract: | This special volume is dedicated to David H. Dean who passed away on August 11th, 2013. This dedication describes David’s impact on the academic research on disability and, most notably, the vital interaction between research and policy. It discusses his influence in shaping perspectives on evaluating the effectiveness of programs to increase employment. Finally, it describes David as a person and why he was influential as a researcher and college professor. |
Keywords: | Vocational rehabilitation, Disability insurance, David Dean |
JEL: | I J |
Date: | 2014–07–21 |
URL: | http://d.repec.org/n?u=RePEc:mpr:mprres:ce607e1b6adc4026a5d39f64737d8eee&r=ias |
By: | Arkadipta Ghosh; Robert Schmitz; Randall Brown |
Abstract: | This study—examining the effects of the Program of All-Inclusive Care for the Elderly (PACE) on Medicare and Medicaid expenditures, use of nursing home services, and mortality—was conducted as part of the Center of Excellence on Disability Research project. PACE plans provide coordinated acute and long-term care services to nursing home–eligible older adults in the community. Two separate components constituted the study: (1) a comprehensive review of existing evaluations of PACE, and (2) an empirical analysis of costs and outcomes for PACE enrollees relative to a matched comparison group. This report presents findings from the empirical evaluation. |
Keywords: | PACE, Program of All-Inclusive Care for the Elderly, Medicare costs, Medicaid costs, Nursing Home admissions, mortality, Mortality |
JEL: | I |
Date: | 2014–01–30 |
URL: | http://d.repec.org/n?u=RePEc:mpr:mprres:a15671e45a6c4ec49d72ce26e5b3b89d&r=ias |
By: | Arkadipta Ghosh; Cara Orfield; Robert Schmitz |
Abstract: | Conducted as part of the Center of Excellence in Research on Disability Services and Care Coordination and Integration project, this study examined the effects of the Program of All-Inclusive Care for the Elderly (PACE) on Medicare and Medicaid expenditures, use of nursing home services, and mortality. PACE plans provide coordinated acute and long-term care services to nursing home–eligible older adults in the community. The study included two separate components: (1) a comprehensive review of existing evaluations of PACE, and (2) an empirical analysis of costs and outcomes for PACE enrollees relative to a matched comparison group. This report presents findings from the literature review. |
Keywords: | PACE, Medicare costs, Medicaid costs, hospitalizations, nursing home admissions, quality of care, mortality |
JEL: | I |
Date: | 2014–01–31 |
URL: | http://d.repec.org/n?u=RePEc:mpr:mprres:286857291884466ebe23ba2526b86282&r=ias |
By: | Amy Finkelstein; Matthew Gentzkow; Heidi Williams |
Abstract: | We study the drivers of geographic variation in US health care utilization, using an empirical strategy that exploits migration of Medicare patients to separate the role of demand and supply factors. Our approach allows us to account for demand differences driven by both observable and unobservable patient characteristics. We find that 40-50 percent of geographic variation in utilization is attributable to patient demand, with the remainder due to place-specific supply factors. Demand variation does not appear to result from differences in past experiences, and is explained to a significant degree by differences in patient health. |
JEL: | H51 I1 I11 |
Date: | 2014–12 |
URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:20789&r=ias |
By: | Marsha R. Gold |
Abstract: | Testimony for the U.S. House of Representatives, Committee on Energy and Commerce, Health Subcommittee. |
Keywords: | Medicare Advantage Medicare + Choice Health Testimony |
JEL: | I |
Date: | 2013–12–04 |
URL: | http://d.repec.org/n?u=RePEc:mpr:mprres:862dbaaf44124ff69c9a8a49dd55c374&r=ias |
By: | Wilfredo Lim; Carol V. Irvin; Rosemary Borck |
Abstract: | This is one volume of a two-part study to understand the rates and patterns of enrollment in Medicaid among individuals already enrolled in Medicare, the factors that predict this transition to dual coverage, and factors that predict nursing home entry. This volume provides estimated econometric models that predict beneficiaries’ enrollment in Medicaid and their entry into long-term nursing home stays. |
Keywords: | Medicare, Medicaid, Enrollee Status, Disability, dual eligibility |
JEL: | I J |
Date: | 2014–01–31 |
URL: | http://d.repec.org/n?u=RePEc:mpr:mprres:ca28627bafb141c995ed4e54ba0d2773&r=ias |
By: | Randy Brown |
Keywords: | Care Coordination, Long-Term Care Beneficiaries, High-Need beneficiaries, Health |
JEL: | I |
Date: | 2013–07–17 |
URL: | http://d.repec.org/n?u=RePEc:mpr:mprres:c223533fb2a446c7b7300f7d6e9aaf1a&r=ias |
By: | International Monetary Fund. Monetary and Capital Markets Department |
Abstract: | EXECUTIVE SUMMARY AND OVERALL ASSESSMENT South Africa’s financial sector operates in a challenging economic environment. Despite remarkable progress since the end of apartheid in 1994, South Africa still has one of the world’s highest unemployment and income inequality rates. Slow economic growth since 2008 has further aggravated unemployment, real disposable income is stagnant, and households are heavily indebted. As a result, banks are increasingly exposed to credit risk, while households and firms are vulnerable to a rise in interest rates. The large fiscal and current account deficits, a weak growth outlook, the reliance of banks on money market funds (MMFs) for short-term wholesale funding, and banks’ active trading in the over-the-counter (OTC) derivatives market make South Africa susceptible to contagion and sudden stops of capital flows. This susceptibility and potential for spillovers have been exacerbated by the significant concentration and interconnections in the financial system, and the substantial expansion of South African banks into sub-Saharan Africa. These vulnerabilities became apparent in August 2014. African Bank, a boutique lender catering mainly to low-income households, was placed under curatorship after record losses from unsecured lending. Although its small size would have suggested no systemic implications, its problems are a reminder that asset quality can quickly deteriorate in a weak economy and even small institutions can entail systemic risk due to high interconnectedness. Relatively high capital buffers as well as sound regulation and supervision have helped mitigate the risks. Banks and insurers are well capitalized and profitable. The South African Reserve Bank (SARB) is a proactive supervisor, with a high level of compliance with international standards on effective banking supervision. The SARB’s decisive action in placing African Bank under curatorship limited contagion. Its proposed bail-in of senior unsecured creditors to share in the burden of resolution is also welcome and a step in the right direction of reducing the “too big to fail premium” for the large banks. Overall, financial sector risks and vulnerabilities are elevated but manageable. Stress tests (ST) confirm the capital resiliency of banks and insurance companies to severe shocks but illustrate a vulnerability to liquidity shortfalls. Some banks have difficulty meeting Basel’s requirement to hold enough high quality liquid assets (HQLA) to survive a stress scenario lasting 30 days without assistance from the SARB. They face even bigger challenges meeting a more stringent requirement to hold a minimum amount of stable funding over a one year horizon. Although these requirements will be gradually phased in, African Bank’s experience highlights the importance of ensuring the large banks maintain adequate liquidity. Given significant downside risks to the economy, strong regulation and supervision are essential to ensure financial sector resilience. The outlook for lackluster growth amid an uncertain global environment requires intensifying scrutiny on asset quality. Remaining gaps in the supervisory and regulatory framework should also be closed. The FSAP recommends the following actions: • Reduce systemic liquidity risk by introducing deposit insurance and variable net asset value (NAV) for MMFs. |
Keywords: | Financial system stability assessment;Financial sector;Banks;Credit risk;Bank resolution;Stress testing;Insurance;Corporate sector;Anti-money laundering;Combating the financing of terrorism;Reports on the Observance of Standards and Codes;South Africa; |
Date: | 2014–12–11 |
URL: | http://d.repec.org/n?u=RePEc:imf:imfscr:14/340&r=ias |
By: | Ha Tu Rebecca Gourevitch |
Abstract: | This report examines efforts by New Hampshire state government over the past decade to use health care price transparency—notably through the creation of HealthCost, a public website comparing costs of median health care bundled prices—to encourage cost-conscious behavior by consumers and increase competition and efficiency among health care providers. The study found that although state transparency initiatives did not directly alter consumers' behavior, they have helped change health care market dynamics in important ways. By highlighting wide provider price gaps within the state, New Hampshire's transparency initiatives increased pressure on high-price hospitals to lower their rate demands and accelerated a statewide trend toward new insurance products that reward consumers for choosing efficient providers. |
Keywords: | New Hampshire, Health Care Price Transparency Experiment, Health |
JEL: | I |
Date: | 2014–04–30 |
URL: | http://d.repec.org/n?u=RePEc:mpr:mprres:13b6fa615b534a58bbce87f293a73cf9&r=ias |
By: | Karen Llanos; Jason Williams; Katie Adamek; Bailey Orshan |
Keywords: | Medicaid, Adult Core Set, Adult Health Care Outcomes, Technical Assistance, Medicaid Health Care Quality, CARTS, Adult CARTS |
JEL: | I |
Date: | 2013–11–21 |
URL: | http://d.repec.org/n?u=RePEc:mpr:mprres:430d6d9e9fb940c3ad52680677b45d17&r=ias |
By: | Jenna Libersky; Allison Hedley Dodd; Shinu Verghese |
Abstract: | This article uses 2005 and 2008 Medicaid Analytic eXtract (MAX) data to present spending and enrollment trends for adults with disabilities who are dually eligible for Medicare and Medicaid. Nationwide, the proportion of adult duals in managed care increased from 2005 to 2008, with the expansion of prepaid health plans (PHPs), particularly behavioral health PHPs, driving the increase. Although overall use of managed care has increased, there has been little expansion in the use of comprehensive managed care among adult dual eligible beneficiaries, particularly when compared with their Medicaid-only disabled adult peers. This imbalance suggests room to remove barriers preventing dually eligible adults, from enrolling in comprehensive, integrated managed care. |
Keywords: | Medicaid Dual Eligibles Managed Care Disability |
JEL: | I J |
Date: | 2013–04–30 |
URL: | http://d.repec.org/n?u=RePEc:mpr:mprres:6f14ab1dff1c46d0b1639a4fa30e1733&r=ias |
By: | Margaret S. Colby; Dominick Esposito; Seth Goldfarb; Daniel E. Ball; Vivian Herrera; Leslie J. Conwell; Susan B. Garavaglia; Eric S. Meadows; Martin D. Marciniak |
Abstract: | This study looked at the impact of Medicare Part D coverage gaps by examining drug discontinuation and reinitiation among Medicare beneficiaries using medications for cancer or rheumatoid arthritis. The study found that patients in the arthritis or cancer groups—28 and 21 percent, respectively—discontinued medications for these conditions in 2006; about three-fourths reinitiated therapy in the first 90 days of 2007. Although medication discontinuation is often temporary, the effect is complex. Some patients might discontinue before reaching the coverage gap to avoid out-of-pocket costs. For those who spend into or through the coverage gap before discontinuing, cumulative out-of-pocket expenditures might be too high to resume treatment the following year. |
Keywords: | Medication Discontinuation, Medicare Part D Beneficiaries, Health, Costly Medications |
JEL: | I |
Date: | 2013–05–01 |
URL: | http://d.repec.org/n?u=RePEc:mpr:mprres:b9130b96109c4466a513c3f6e4da288c&r=ias |
By: | Vivian Byrd; Jessica Nysenbaum; Debra Lipson |
Abstract: | This toolkit provides a practical guide to collecting, validating, and reporting Medicaid managed care encounter data. |
Keywords: | data collection, data validation, encounter data, Medicaid beneficiaries, managed care plans, managed care organizations, Medicaid Statistical Information System |
JEL: | I |
Date: | 2013–11–30 |
URL: | http://d.repec.org/n?u=RePEc:mpr:mprres:31bb7f4ca5bf420884693af69b11538b&r=ias |
By: | Julia Paradise; Marsha Gold; Winnie Wang |
Abstract: | This brief, the last of three case studies examining key operational aspects of coordinated care initiatives in Medicaid, focuses on Rhode Island's Chronic Care Sustainability Initiative. This multi-payer, patient-centered medical home initiative includes the one Medicaid health plan in the state and commercial health plans. |
Keywords: | Medical Home Rhode Island Chronic Care Sustainability Initiative Medicaid |
JEL: | I |
Date: | 2013–11–30 |
URL: | http://d.repec.org/n?u=RePEc:mpr:mprres:d40e4911b1614774bd393abe9244feaf&r=ias |
By: | Jelena Zurovac; Randy Brown; Bob Schmitz |
Keywords: | Care Coordination Medicare Dual Eligibles Special Needs Plans |
JEL: | I J |
Date: | 2013–03–11 |
URL: | http://d.repec.org/n?u=RePEc:mpr:mprres:57a6715d8b914f4ca2b45fc911ede157&r=ias |